Airlines worldwide may spend an extra $100 billion on jet fuel this year, with ticket prices expected to rise following a major disruption to global oil supply linked to the war with Iran, the International Air Transport Association (IATA) has said.
IATA warned that jet fuel prices could rise by about 70 per cent in 2026, cutting global airline profits in half to around $23 billion and putting severe pressure on carriers already operating on thin margins.
Speaking at an aviation summit in Rio de Janeiro, IATA Director General Willie Walsh said higher oil prices would inevitably lead to higher fares.
“High oil prices will inevitably mean higher ticket prices. There’s just no way to avoid that,” he was quoted as saying.
Walsh added that while passengers are adapting to rising fares, the key uncertainty is how long demand can hold up under sustained cost pressure.
He described the industry environment as challenging but not a crisis.
British Airways CEO Sean Doyle also said long-haul and business travellers are likely to see the biggest fare increases, while short-haul leisure routes may adjust more slowly.
IATA also restated that Nigeria remains one of the most expensive countries in the world to operate airlines, citing high taxes, charges, and operational costs that continue to limit airline profitability.
Regional Vice President Kamil Al-Awadhi said Nigerian airports, especially Abuja and Lagos, rank among the most expensive in Africa due to multiple charges imposed on airlines.
He urged ECOWAS countries to reduce aviation taxes by 25 per cent to lower ticket prices, boost demand, and improve airline competitiveness across the region.
