AACO forecasts $4.3bn loss for Arab airlines in 2026 — Euronews
In Doha, Qatar, the Arab Air Carriers’ Organization (AACO) forecast that its members would record a combined net loss of $4.3 billion, or €3.82 billion, in 2026. The organization includes 39 airlines from the Middle East and North Africa, including Qatar Airways, Emirates, Etihad Airways and Gulf Air, Euronews reports.
In its annual report, AACO linked pressure on carriers’ financial performance to geopolitical uncertainty and volatile financial conditions. The association also expects its members’ air cargo volumes to fall by 5.2%.
Fuel costs are rising
According to AACO estimates, fuel will account for 37.3% of member airlines’ operating costs in 2026. A year earlier, this figure stood at 27.9%. In the global aviation industry, the share of fuel costs is forecast to reach 31.4%, compared with 25.4% in 2025.
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At the same time, the organization noted that the global aviation industry as a whole would remain profitable, although its profitability would decline due to more expensive energy and operational disruptions. The sector’s global net profit could fall to approximately $23 billion (€20.5 billion), according to the forecast cited — the lowest level in 12 years, excluding the COVID-19 pandemic period and its aftermath.
Objections to EU carbon rules
At AACO’s annual general meeting, participants also voiced concerns over the European Union’s proposed expansion of the Emissions Trading System (ETS). A resolution adopted in Doha opposes extending the system by 2029 to flights departing from the European Economic Area and heading to third countries within 5,000 kilometres of Frankfurt.
AACO Secretary General Abdul Wahab Teffaha said such an expansion raises questions about airspace sovereignty and, in the association’s view, may contradict the Chicago Convention. He also warned of the risk of double costs for Arab carriers if ETS rules are not aligned with the international CORSIA scheme, which provides for offsetting part of the emissions from international flights.
