The International Air Transport Association (IATA) has warned that global airlines are set to face an additional $100 billion fuel bill in 2026, a development expected to push up airfares worldwide as jet fuel prices rise following disruptions to global oil supply chains.
Speaking at IATA’s annual summit in Brazil, Director General Willie Walsh said the surge in fuel costs would inevitably be passed on to passengers, with airlines likely to increase ticket prices across key routes, reports The Guardian.
Walsh noted that despite continued growth in global passenger demand, industry-wide profits are projected to fall by nearly 50 percent to about $23 billion, as higher operating costs weigh heavily on carriers. He added that long-haul and premium-class travellers are expected to bear the greatest impact of the fare increases.
The association also raised concerns about the high cost of airline operations in Africa, identifying Nigeria as one of the most expensive countries for aviation business due to excessive taxes, charges, and operational constraints that continue to affect airline profitability and competitiveness.
IATA urged countries within the Economic Community of West African States (ECOWAS) to reduce aviation-related taxes by at least 25 percent, arguing that such reforms would improve regional connectivity, lower ticket prices, and support long-term industry growth.
The body warned that without urgent policy intervention, rising costs could further limit accessibility to air travel across developing markets, particularly in West Africa.
Further details are expected as the summit continues, with additional policy recommendations and industry responses anticipated in the coming sessions.
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