Middle East Aviation Industry Turns to Losses Due to Iran Conflict

IATA forecasts Middle East airlines to post a net profit of $7.2 billion in 2025 but a net loss of $4.3 billion in 2026, a deterioration of $11.5 billion. Major carriers have resumed operations but capacity is not fully restored, with European and Asian airlines resuming at different times. Airspace closures persist, and EASA advises avoiding certain areas. Emirates has introduced travel insurance to attract passengers, but cargo demand growth lags globally.