Arab airline group forecasts US$4.3 billion loss for members in 2026
The association also opposed a proposed expansion of EU aviation emissions rules, warning that carriers could face overlapping charges.
The Arab Air Carriers' Organization (AACO) expects its member airlines to lose US$4.3 billion in 2026, citing geopolitical uncertainty and changing financial conditions. Its annual report also forecasts a 5.2 per cent fall in their air cargo traffic.
The association, which represents 39 airlines across the Middle East and North Africa, presented the findings as members gathered in Doha for their annual general meeting. It said results would differ considerably according to where carriers' hubs are located and their exposure to markets affected by conflict.
AACO expects the global airline industry to remain profitable, with net earnings of around US$23 billion in 2026. However, it said higher energy costs and operational disruption were squeezing margins. Fuel is forecast to account for 37.3 per cent of members' operating costs, compared with 27.9 per cent in 2025.
At the meeting, members adopted an environmental resolution rejecting a proposed extension of the EU Emissions Trading System. The expansion would cover departures from the European Economic Area to destinations in third countries within 5,000 kilometres of Frankfurt Airport by 2029.
AACO Secretary General Abdul Wahab Teffaha argued that the proposal would infringe other countries' sovereignty. He also warned that airlines could pay twice for emissions reductions unless the EU system and the existing Carbon Offsetting and Reduction Scheme for International Aviation recognised each other's charges.
European routes remain important to member carriers. Qatar Airways cited increased services to London Heathrow and Frankfurt, while Emirates began a daily Helsinki route in October, adding to its Nordic network.
