IATA Chief Willie Walsh Reveals Airline Profit Margins Lag Behind iPhone Cover

The International Air Transport Association (IATA) Director General Willie Walsh highlighted the persistently low profit margins within the airline industry, projecting a mere $7.90 profit per passenger for 2026. Speaking in Geneva, Walsh underscored that this figure, unchanged from 2025 and down from $8.50 in 2023, represents a "pittance" when considering the substantial value airlines contribute to the global economy.

Walsh starkly illustrated the disparity by noting that Apple is expected to earn more from selling a single iPhone cover than airlines will make from transporting an average passenger. Despite the air transport sector underpinning nearly 4 percent of the global economy and supporting 87 million jobs, airline margins remain "out of balance" compared to other segments of the value chain, particularly engine and avionics manufacturers and various service suppliers. The industry's total net profit for 2026 is forecast at $1 billion.

The global airline industry continues to contend with significant headwinds, including persistent supply chain disruptions, widespread aircraft delivery delays, and ongoing geopolitical uncertainties. These challenges are impeding fleet renewal efforts, pushing the average aircraft age to over 15 years, and consequently limiting fuel efficiency gains to a mere one percent. This confluence of factors further constrains the industry's ability to improve its profitability.