Airlines across Asia and the Middle East are reporting weaker profits as elevated jet-fuel prices substantially increase operating costs. Carriers with limited fuel hedging are particularly exposed, while route disruptions and longer flight paths are adding further expense.
Although some airlines have introduced higher fares and fuel surcharges, competitive markets and softer demand restrict full cost recovery.
The continuing fuel-price volatility is therefore expected to place sustained pressure on airline margins and financial performance during 2026.

Air France-KLM and Lufthansa Group have submitted competing bids for a 44.9–49.9% stake in TAP Air Portugal. Both groups plan to retain TAP’s Portuguese identity while developing Lisbon as a major hub for South Atlantic services to Brazil, Africa and North America. Their proposals also include network expansion, job creation and increased aircraft-maintenance investment in Portugal. The Portuguese government has not yet announced when it will select a preferred bidder.

WestJet’s 4,400 flight attendants have issued a 72-hour strike notice, allowing industrial action to begin as early as 2 August 2026. The dispute centers on wages and demands that cabin crew be paid for all duty time, including boarding, safety checks and delays. WestJet has responded with its own lockout notice and is preparing for possible operational reductions during the peak summer period. Negotiations remain ongoing, while flexible rebooking arrangements have been introduced for passengers travelling between 30 July and 4 August.