Arab Air Carriers Organization expects member airlines to lose $4.3B in 2026

The forecast matters less as a headline number than as a signal about the region's aviation economics: losses are being driven by conflict and energy costs rather than demand collapse, since passenger operations aren't cited as the weak point. The sharper detail is cargo, where 2025 growth is expected to reverse in 2026 — a swing that matters for trade and logistics exposure tied to Gulf and Levantine hubs. Whether that cargo reversal proves cyclical or conflict-driven is the open question, and it bears watching alongside how member carriers adjust capacity.