Arab airlines are projected to record a collective net loss of roughly €3.82 billion in 2026, according to a report released at the annual general meeting of the Arab Air Carriers' Organization, held this week in Doha.
The Arab Air Carriers' Organization, known as AACO, is the trade body representing airlines based in the Arab world, and its annual meeting is a regular venue for the industry to review financial performance and raise shared concerns with regulators. At this year's gathering, member airlines raised concerns about European Union carbon regulations, which require airlines flying into or within Europe to account for and in many cases pay for their carbon emissions. Airline executives argued the rules add cost pressure at a time when carriers in the region are also trying to expand connectivity to European destinations.
The reported loss comes even as air travel demand in the Middle East has generally been growing, with several carriers in the region expanding fleets and route networks in recent years as regional hubs compete to attract international travelers and connecting traffic. The gap between rising demand and a projected net loss points to the cost side of the industry's ledger, including fuel, regulatory compliance, and competitive pricing pressure, rather than a lack of passengers.
AACO's report did not single out individual carriers, presenting the figure as a collective, industry-wide projection for the year rather than a breakdown by airline.
Why are Arab airlines projected to lose money this year despite demand growth?
Industry representatives pointed to cost pressures including European carbon regulations, even as passenger demand in the region has generally been rising.
What is AACO?
The Arab Air Carriers' Organization is the trade association representing airlines based in the Arab world.