UAE, Qatar, Saudi Arabia to Dominate Global Aviation Profits in 2026 – Middle East Set for Unprecedented Airline Success!

Published on December 11, 2025

In its latest forecast for the global aviation industry, the International Air Transport Association (IATA) confirmed that the Middle East is expected to dominate the airline profitability rankings in 2026. The region’s carriers are projected to achieve the highest net profit margin and profit per passenger globally, making the Middle East the undisputed leader in airline profits. This remarkable achievement reflects the region’s strategic investments, supportive policies, and its pivotal role as a global aviation hub.

Strong Performance Amid Challenges

Middle Eastern airlines are projected to generate $6.9 billion in net profit in 2026. This impressive financial performance is a result of various factors, including a robust long-haul traffic market, expanding hub capacities, and ongoing investments in infrastructure. Middle East airlines are expected to deliver a 9.3% profit margin and a $28.6 profit per passenger, both significantly surpassing global averages of 3.9% and $7.9, respectively.

With 5.2 billion passengers forecasted to travel globally in 2026, the Middle East’s passenger traffic is predicted to reach 240 million passengers, reflecting a 6.1% growth rate that outpaces the global average of 4.9%. This sustained growth shows the region’s continued importance as a major player in the global aviation sector, attracting travelers from around the world.

Structural Challenges Hindering Growth

Despite the positive outlook, the Middle East faces several persistent challenges that threaten to undermine its aviation growth potential:

• Blocked Funds: The region holds a disproportionate share of global blocked airline funds. As of October 2025, 43% of the $1.2 billion in blocked airline funds is held in the Middle East and North Africa (MENA) region, with $515 million locked in. Notably, Algeria represents the largest share of these blocked funds, primarily due to new administrative delays in approval processes. Meanwhile, Lebanon continues to struggle with legacy blocked funds from the 2019–2021 period.
• Geopolitical Instability: Ongoing conflicts in countries such as Yemen, Syria, Iraq, and Lebanon continue to disrupt air operations and airspace access. Airlines are forced to take longer routes to bypass restricted airspaces, leading to increased fuel consumption, longer flight times, and higher emissions. Furthermore, the region faces challenges with sanctions, as well as technical issues related to GNSS interference like spoofing and jamming, complicating flight operations.
• Economic Disparities: While countries like the UAE, Qatar, and Saudi Arabia have made significant advancements in developing world-class aviation systems, lower-income nations such as Yemen, Lebanon, and Syria struggle with outdated infrastructure, limited resources, and insufficient investments in aviation systems.

The Path Forward: Enhancing Regional Cooperation

To ensure the Middle East’s aviation sector can fully capitalize on its growth potential, IATA has called for greater cooperation among regional stakeholders. Key priorities include:

1. Creating a More Integrated Air Transport Market: Reducing market fragmentation and improving connectivity across the region is essential for ensuring the seamless flow of passengers and goods. A more coordinated approach to air transport can significantly improve efficiency and reduce operational complexities.
2. Ensuring Fair Consumer Protection: There is a pressing need for national regulations to align with International Civil Aviation Organization (ICAO) principles and global best practices. This alignment will help create a more fair and transparent environment for travelers, ensuring that consumer rights are adequately protected across the region.
3. Supporting Sanctioned States: Several countries in the region are emerging from sanctions and need support to reintegrate into the global aviation system. This includes improving access to aircraft, financing, and adherence to international aviation standards. A concerted effort to assist these nations will help them re-establish their positions in the global aviation market and contribute to regional growth.

The Importance of Coordination in Achieving Aviation Goals

Kamil Al-Awadhi, IATA’s Regional Vice President for Africa and the Middle East, emphasized the need for greater regional coordination to unlock the full potential of the aviation sector. Al-Awadhi stressed that a unified approach to aviation regulation, improved consumer protections, and the resolution of blocked funds are essential steps in strengthening connectivity and efficiency across the region.

In particular, Al-Awadhi highlighted the importance of clearing blocked funds, ensuring fair consumer protections, and facilitating the reintegrations of sanctioned states. A more harmonized regulatory environment, coupled with deeper cooperation, would benefit all markets and help ensure that the Middle East aviation sector remains a global leader.

Conclusion: The Road Ahead for Middle Eastern Airlines

The Middle East is poised to lead the global aviation sector in 2026, driven by strong financial fundamentals and strategic investments in infrastructure. However, to maintain and build upon this success, the region must address key challenges, including geopolitical instability, blocked funds, and economic disparities among its member countries. Greater regional cooperation, improved regulatory frameworks, and a concerted effort to support states emerging from sanctions will be crucial in achieving sustained growth and unlocking the full potential of the Middle East’s aviation industry.