The global aviation industry is entering 2026 with renewed momentum as it moves beyond the disruption caused by the Covid-19 pandemic, according to PwC Ireland’s 2026 Global Aviation Outlook.

The report points to a broadly positive outlook for aviation finance, supported by stable airline profitability and continued growth in passenger volumes.

Figures from the International Air Transport Association show the global airline industry is on track to generate record profits of US$41 billion (€34.85b) in 2026, up from US$39.5 billion (€33.58b) in 2025, representing a profit margin of 3.9 per cent, or roughly US$7.90 (€6.72) per passenger.

Passenger traffic is forecast to grow by 4.9 per cent in 2026, slightly below the 5.2 per cent growth recorded in 2025, while average air fares are expected to remain broadly flat.

Geopolitical instability, protectionism, and pressure on margins remain ongoing risks for the sector.

Supply chain constraints, particularly for engines and maintenance, repair and overhaul (MRO) capacity, are expected to test airlines’ ability to transition to newer, more fuel-efficient aircraft.

Brian Leonard, aviation finance leader at PwC Ireland, said the outlook is positive but “requires strategic foresight,” highlighting opportunities for mergers and acquisitions and the adoption of generative AI to enhance operating models.

New aircraft delivery funding is projected to exceed US$100 billion (€91.5 billion) in 2026, with leasing companies expected to provide around 60 per cent of this financing.

PwC also noted that consolidation will reshape the leasing market, with larger asset managers emerging and technology adoption critical for efficiency, automation, and sustainability.

Paul Sheridan, aviation finance advisory leader at PwC Ireland, added that Ireland’s position as a global aviation finance hub will strengthen, benefiting leasing companies managing global fleets.

Explore the full article on the PwC outlook to understand the 2026 aviation finance landscape and strategic opportunities.