Apple iPhone Cover vs Airline Profit: IATA Chief

Geneva, Dec 9 (PTI) Apple will earn more by selling an iPhone cover than the USD 7.90 profit per passenger that airlines will make next year, IATA chief Willie Walsh said on Tuesday, as he highlighted that industry-level margins remain a pittance.

The International Air Transport Association (IATA), which represents around 360 carriers worldwide, on Tuesday announced the industry's financial outlook for 2026, wherein the total net profit is projected at USD 41 billion.

"Industry-level margins are still a pittance considering the value that airlines create by connecting people and economies. They stand at the core of a value chain that underpins nearly 4 per cent of the global economy and supports 87 million jobs.

"Yet Apple will earn more selling an iPhone cover than the USD 7.90 airlines will make transporting the average passenger," Walsh, the Director General of IATA, said.

He also mentioned that even within the air transport value chain, airline margins are totally out of balance, particularly when compared to margins of engine and avionics manufacturers and many of our service suppliers.

For 2026, the net profit per passenger transported is expected to be USD 7.90, unchanged from 2025 and lower than USD 8.50 recorded in 2023.

The global airline industry has been grappling with various headwinds, including supply chain woes, aircraft delivery delays and geopolitical uncertainties.

Fuel efficiency gains are expected to be just 1 per cent as supply chain issues continue to hamper fleet renewal and push the average aircraft age to over 15 years, as per IATA.