Arab airlines set to record a collective net loss of €3.82 billion in 2026, AACO report reveals

At the recent AGM in Doha, the Arab Air Carriers’ Organization expressed concerns about EU carbon regulations impacting Arab airlines. The AACO forecasts a $4.3 billion loss for its members in 2026 due to geopolitical uncertainties and rising operational costs. The EU's proposed Emissions Trading System (ETS) was criticized for potentially infringing on regional sovereignty and imposing unfair costs on Arab carriers. Despite challenges, Arab airlines are focusing on strengthening European connectivity, with increased flights planned to major cities. The event highlighted the importance of regional cooperation amid ongoing instability.