Middle East Aviation Hit Hard by Iran Conflict

IATA forecasts Middle East airlines to post a net profit of $7.2 billion in 2025 but a loss of $4.3 billion in 2026. Major carriers have resumed operations but capacity remains below pre-war levels, with European and Asian airlines delaying resumptions and airspace intermittently closed. Emirates has introduced travel insurance as a safety net, but cargo has not seen a windfall, and high fuel costs add pressure. The hub model is tested by geopolitical risks.