RIYADH: Middle Eastern carriers generated an estimated $7.2 billion in net profit in 2025, delivering the highest profit margins globally among all regions, according to the International Air Transport Association’s Annual Review.
In its latest report, IATA revealed that this strong performance, corresponding to a 9.4 percent net margin, was supported by strong hub operations, a high share of premium traffic, favorable fuel costs, and ongoing network expansion.
The growth in the region’s aviation sector underscores progress in economic diversification efforts by countries, including Saudi Arabia, which aims to position itself as a tourism and business hub by the end of this decade.
“Middle East airlines’ strong profitability, high cash levels, and the lowest financial leverage among all regions are underpinned by a supportive infrastructure and regulatory environment,” said IATA.
Globally, airlines achieved a record net profit of $45 billion in 2025, with nearly 5 billion passengers and 71.5 million tonnes of cargo.
However, the collective net margin remained modest at 4.2 percent. Strong performance into 2026 was disrupted by an oil price shock linked to conflict in the Middle East, which is expected to significantly impact profits and margins this year.
“Although airlines have improved profitability in 2025, overall net margins remain paltry. An oil shock sparked by war in the Middle East led to surging fuel prices that will impact airline profits in the short term. Supply chain constraints and meeting net-zero carbon emissions by 2050 continue to present a long-term challenge,” said Willie Walsh, director general of IATA.
North America lost its position as the most profitable region in absolute terms, with net profits estimated at $12.4 billion in 2025, with the margin limited to 3.5 percent.
Europe delivered the strongest financial performance in absolute terms among all regions, with net profit reaching $13 billion with a margin of 4.5 percent.
Latin America recorded an improvement, generating $1.9 billion in net profit and a margin of 3.8 percent, up from 0.4 percent in 2024.
According to the report, Saudi Arabia and the UAE were ranked in the top 10 of the world’s biggest aviation markets, underscoring the region’s growing importance in global connectivity.
The UAE’s aviation sector, which stands at the 9th spot in the list, contributed $92 billion to the national gross domestic product, followed by the Kingdom in the tenth spot with $90.6 billion.
IATA further said that Middle Eastern passengers favor airports with strong service reputations and preferred airlines.
Passengers in the region are highly digitally engaged, with widespread use of digital wallets and strong enthusiasm for smartphone-based travel credentials.
The Middle East also plays a crucial role in global air cargo, accounting for around 13 percent of worldwide cargo traffic despite a smaller share of passenger traffic.
IATA added that disruptions in the region in early 2026 notably affected global cargo flows.
IATA’s long-term projections remain optimistic, forecasting that global air passenger demand will more than double by 2050 under its mid-range scenario, which expects a 3.1 percent compound annual growth from 2024 to 2050.
