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New checked baggage charges? Some airlines running into trouble with the Iran war fuel price surge
The Iran war has created multiple challenges for the air travel industry.
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US-based Spirit Airlines recently ceased operations after struggling for the last couple of years, prompting talk of a US government bailout package for budget airlines.
PHOTO: REUTERS
Nitin Pangarkar
The airline industry is at a crossroads today. In December 2025, the International Air Transport Association (IATA), whose members include most major airlines, predicted that airlines would earn record total net profits of US$41 billion (S$52 billion) in 2026. Yet that glowing forecast came with a caveat: net profit margin and net profit per passenger would remain the same as the previous year at 3.9 per cent and US$7.90.
The industry appears to have emerged strongly from the pandemic. Singapore Airlines announced record quarterly revenues and healthy profits for the quarter ending December 2025, supported by robust year-end traffic demand and stronger yields.
