The International Air Transport Association (IATA) has unveiled its Middle East outlook as part of its 2026 global industry forecast, and the region is officially flying higher than the rest of the world. According to IATA’s latest analysis, Middle Eastern carriers are poised to deliver the highest net profit margin globally (9.3%) and the highest profit per passenger ($28.6) in 2026, smashing the global averages of 3.9% and $7.9 respectively.
“The Middle East’s position as the most profitable region in 2026, in terms of profit margin and profit per passenger, underscores the benefits of strategic investment, supportive policy frameworks, and the region’s role as a global connecting hub. But this success is far from uniform. Several carriers continue to face severe financial pressure due to geopolitical instability, blocked funds, and uneven infrastructure development. Closing this gap must be a regional priority. A more harmonized regulatory approach and deeper cooperation will help ensure all markets can participate in – and benefit from – the region’s growth trajectory.” – Kamil Al-Awadhi, IATA Regional Vice President, Africa and Middle East
Middle East airlines outpace the world
Middle East carriers are set to generate a whopping $6.9 billion in net profit in 2026, fuelled by booming long-haul demand, expanding hub capacity, and heavy investment in next-gen aviation infrastructure. For context, the global industry is forecast to hit $41 billion in net profit, with 5.2 billion passengers expected to take to the skies worldwide.
The region’s passenger market is forecast to reach 240 million travellers by 2026, supported by a punchy 6.1% growth rate that comfortably outstrips the global average of 4.9%. Cargo demand is expected to grow 2.6% worldwide, with Middle East volumes holding steady thanks to its strategic geography and thriving logistics networks.
Also read: The Middle East leads aviation upswing
Key challenges for certain carriers
But it’s not all smooth cruising. Several persistent issues continue to impact aviation growth across the region:
Blocked funds: Of the $1.2 billion in airline funds trapped globally as of October 2025, a hefty 43% ($515 million) remains stuck in the Middle East and North Africa. Algeria now accounts for the largest chunk due to new approval procedures causing lengthy administrative delays. Lebanon’s blocked funds remain unchanged, linked to legacy balances from 2019–2021.
Geopolitical instability: Operational complexity continues to rise due to ongoing conflicts in Yemen, Syria, Iraq and Lebanon. Closed or restricted airspace forces airlines into longer detours, meaning higher fuel burn, increased emissions, and extended flight times. On top of this, sanctions and a spike in GNSS interference (spoofing and jamming) add further operational headaches.
Economic disparities: Aviation growth remains uneven. GCC powerhouses like the UAE, Qatar and Saudi Arabia are racing ahead with world-class infrastructure and future-ready aviation ecosystems. Meanwhile, lower-income countries such as Yemen, Lebanon and Syria are constrained by outdated systems, limited resources and a lack of investment opportunities.
A call for regional unity
To unlock aviation’s full potential across the Middle East, IATA is urging governments and regulators to step up collaboration and harmonise policies. Its key recommendations include:
- Integrating the air transport market to boost connectivity and reduce fragmentation
- Aligning consumer protection laws with ICAO standards and international best practice
- Supporting states emerging from sanctions with clear pathways to safely rejoin the global aviation community — including access to aircraft, financing and regulatory guidance
“Greater regional coordination is essential for the Middle East to realize its full aviation potential. An integrated air transport market, fair consumer protection rules, and clearing blocked funds will strengthen connectivity and efficiency across the region. And for states emerging from sanctions, creating clear pathways for safe reintegration is vital. By working together on these priorities, the region can ensure that aviation’s benefits are shared more evenly and sustainably.” – Al-Awadhi
Access the full presentation here.
