Arab airlines set to record a collective net loss of €3.82 billion in 2026, AACO report reveals

Arab airlines are projected to record a net loss of $4.3 billion (€3.82 billion) in 2026, according to a report from the Arab Air Carriers' Organization (AACO).

The report was presented at AACO's annual general meeting in Doha, which brings together 39 Arab airlines, including Qatar Airways, Emirates, Etihad Airways and Gulf Air. AACO cited "geopolitical uncertainties" and "fluctuating financial conditions" as pressures on regional carriers. Global airline net profit is forecast to fall to about $23 billion (€20.5 billion), its lowest level in 12 years excluding the COVID-19 period and its aftermath.

Fuel is a major concern. It is expected to take 37.3% of operating costs for AACO members, up from 27.9% in 2025. The meeting also adopted a resolution opposing the extension of the EU Emissions Trading System (ETS) to flights from the European Economic Area to third countries within 5,000 kilometres of Frankfurt Airport by 2029. AACO's Secretary General, Abdul Wahab Teffaha, argued this infringes on sovereignty and could mean double charges alongside CORSIA.

Gulf carriers are still expanding in Europe. Qatar Airways plans more flights to London Heathrow and Frankfurt, while Emirates launched a daily route to Helsinki in October and has $7 billion (€6.2 billion) of fleet investment under way.

Key points

• AACO forecasts a 2026 net loss of $4.3 billion (€3.82 billion) for its members.
• Air cargo traffic is expected to decline 5.2%.
• Fuel is projected to make up 37.3% of AACO members' operating costs.
• AACO opposes EU ETS extension to flights within 5,000 km of Frankfurt by 2029.
• Qatar Airways and Emirates are increasing flights to Europe.