Tag: war

West Asian conflict, high fuel prices affect airline industry profits in 2026

KUALA LUMPUR, Jun 8 -- Total airline net profit in 2026 is expected to reach US$23 billion (US$1 = RM4.02), half the previous forecast of US$41 billion, due to disruptions in West Asia involving war and high fuel prices, said the International Air Transport Association (IATA). “At the geographic epicenter of the West Asian war, airlines in West Asia are expected to collectively suffer losses due to weak demand and operational disruptions. "All other regions are expected to record gains, but at a lower level than previously projected," it said in a statement on Sunday. Total industry revenue is expected to reach US$1.16 trillion in 2026 (up 9.4 percent from US$1.065 trillion in 2025), while passenger load factors are forecast to continue to hit a record high with airlines expected to fill 84.0 percent of all seats throughout the year. This is an increase from 83.5 percent in 2025. Among other things, the number of passengers is expected to reach 5.1 billion in 2026 (up 2.4 percent compared to 2025) and the number of cargo is expected to reach 71.7 million tonnes in 2026 (up 0.2 percent compared to 2025). Commenting further, IATA Director General Willie Walsh said airlines from Gulf countries faced operational uncertainty due to the almost complete closure of airspace when the war began. The airline has done an amazing job of maintaining connectivity, but a huge financial impact is inevitable. “Even in the best of circumstances, the aviation industry as a whole suffers from low margins and returns below the cost of capital. "The sharp rise in oil prices has tested the financial resilience of airlines as net margins have been reduced to two percent worldwide," he said. He said airlines were bearing the brunt of the sudden increase in fuel prices. "Even though airfares increase, airlines still absorb part of the increase through their net profits. “Net profit per passenger is expected to drop to US$4.50, half of last year's amount. “In this situation, it shows resilience, but it won’t allow you to buy hot dogs at most FIDA World Cup venues and it doesn’t leave much of a surplus should other costs or taxes start to increase,” Walsh said. As for fuel costs, IATA said they are expected to increase by almost 40 percent to US$350 billion in 2026 from US$252 billion in 2025. This is based on an expected average crude oil price of US$95 per barrel (Brent) for this year, up 37 percent from US$69 in 2025. According to the association, jet fuel prices are expected to average US$152 per barrel this year, an increase of almost 70 percent from US$90 in 2025. "The difference between the price of crude oil and the price of refined products (the premium for jet fuel over Brent crude oil) is expected to reach an average of US$57 per barrel, the highest level in history," said IATA, which represents more than 370 airlines accounting for about 85 percent of global air traffic. — BERNAMA

KUALA LUMPUR, Jun 8 — Total airline net profit in 2026 is expected to reach US$23 billion (US$1 = RM4.02), half the previous forecast of US$41 billion, due to disruptions in West Asia involving war and high fuel prices, said the International Air Transport Association (IATA). “At the geographic epicenter of the West Asian war, […]

Trump Says US-Israeli War On Iran Will ‘Be Over With Soon’

WASHINGTON, May 23 -- President Donald Trump appeared to signpost Friday that a conclusion to the US-Israeli war against Iran is on the horizon, Anadolu Ajans reported. "We have stopped them. They're not going to ever have a nuclear weapon. They're never going to have a nuclear weapon. And we'll have that over with soon. It'll be over with soon," the US president told his supporters in the state of New York. "You're going to see numbers like you've never seen, both on the upside and also in terms of cost; you're going to see cars go down," he added. Earlier Friday, Iran's semi-official news agency reported that a Qatari delegation is negotiating with Iranian Foreign Minister Abbas Araghchi in Tehran in a bid to end the war amid Pakistani mediation. The report came after Pakistan’s army chief, Field Marshal Asim Munir, arrived in Tehran as part of Islamabad's ongoing mediation efforts to end the war. It is the second such trip to Tehran by Munir. Pakistan's Interior Minister Mohsin Naqvi has been in Tehran for the past two days as part of indirect talks between the US and Iran. The flurry of diplomatic activity comes as reports suggest negotiators are closing gaps on an agreement to end the war. Mediation to draw hostilities to a close began when Pakistan secured a ceasefire on April 8, halting the war and later hosting the highest-level talks between the US and Iran since 1979 on April 11-12. Islamabad has intensified its mediation process to secure a second round of direct talks between the two sides. -- BERNAM

WASHINGTON, May 23 — President Donald Trump appeared to signpost Friday that a conclusion to the US-Israeli war against Iran is on the horizon, Anadolu Ajans reported. “We have stopped them. They’re not going to ever have a nuclear weapon. They’re never going to have a nuclear weapon. And we’ll have that over with soon. […]

Trump agrees to suspend attacks on Iran for two weeks

Trump Says UK's New Premier Told Him He Would Open Up North Sea For Oil

WASHINGTON: United States President (Donald Trump) claims to have agreed to suspend military strikes against Iran for a period of two weeks, subject to the full and safe opening of the Strait of Hormuz by the Islamic Republic. Trump announced the matter through a post on social media on Wednesday, following his conversation with Pakistani […]

1 million Iranian troops ready to face US ground attack

TEHRAN: Iran has reportedly mobilized more than a million military personnel in preparation for a possible US ground attack, a military source told the Tasnim news agency. Speculation about Washington's potential "historic mistake" of launching an invasion from southern Iran is said to have sparked a wave of preparedness among the country's ground forces. According to the source, the Islamic Revolutionary Guard Corps (IRGC) and the Iranian army have received a large influx of applications from youth who want to join the national defense. "If the US chooses the suicidal tactic of opening the Strait of Hormuz, we are ready. Whether they want to implement that strategy or leave the strait closed, the decision is in their hands," the source said. Tensions escalated after the US and Israel launched a massive military operation against Iran following the assassination of the Supreme Leader of the Islamic Revolution, Ayatollah Ali Khamenei, along with several military commanders and civilians on February 28. Airstrikes targeting military and civilian facilities across Iran reportedly resulted in heavy casualties and widespread infrastructure damage. In response, the Iranian armed forces launched counterattacks using missiles and drones against US and Israeli targets in the occupied territories and regional bases.

TEHRAN: Iran has reportedly mobilized more than a million military personnel in preparation for a possible US ground attack, a military source told the Tasnim news agency. Speculation about Washington’s potential “historic mistake” of launching an invasion from southern Iran is said to have sparked a wave of preparedness among the country’s ground forces. According […]