The global airline industry’s profits could be cut in half as it braces for its worst year since the pandemic

(Credit: Moe Zoyari—Bloomberg via Getty Images)

Even as travelers keep flying, airlines’ profits could be cut in half, thanks in part to the stranglehold Iran has imposed on the global oil supply, according to a global trade group for the industry.

The airline sector’s net profit for the year is projected to collapse to $23 billion from $45 billion in 2025, while its net margins plummet to 2%, less than half of the 4.2% they were last year, said Willie Walsh, the outgoing director general of the International Air Transport Association (IATA).