November 5, 2026
The Arab aviation sector faces serious financial challenges. The Arab Air Transport Federation expected its member companies to incur net losses of $4.3 billion in 2026. The association attributed these expectations, announced during its annual meeting in Doha, to the escalating cost of fuel and flight disruption resulting from regional tensions, as well as the expected burdens resulting from the expansion of the European emissions trading system.
The annual report of the Federation, which represents 39 Arab airlines, stated that air cargo traffic will witness a decline of 5.2%. On the other hand, the share of fuel in total operational costs is likely to rise to 37.3% in 2026, compared to 27.9% in 2025. In the global context, the aviation sector is expected to maintain its profitability with net profits estimated at about $23 billion, thus recording its lowest level in 12 years, excluding the period of the Corona pandemic and its repercussions.
At the level of environmental legislation, the Union expressed its strong objection to the European proposal to expand the scope of the emissions trading system by 2029, to include flights departing from the European Economic Area to countries outside it that are within 5,000 kilometers of Frankfurt Airport. The Secretary-General of the Union, Abdel-Wahab Tuffaha, explained in statements to Euronews that this proposal involves a violation of countries’ sovereignty over their airspace, and exposes airlines to a double cost for the same emissions if the European system fails to calculate the compensation previously paid through the international program “CORSIA.”
Despite these regulatory and operational challenges, Gulf carriers are moving forward with expanding their European destination network. In this context, Qatar Airways intends to increase the number of its flights to several major destinations, including London Heathrow and Frankfurt, while Emirates Airlines launched new daily flights to the Finnish capital, Helsinki, last October, to enhance its presence in the Nordic countries.
