European airlines: restructuring programmes are increasing
In 2026 Europe's airlines face the impact of geopolitical tensions on air traffic to the Middle East, parts of Eastern Europe, and (as a result of closed Russian airspace) Asia.
Geopolitics have also adversely affected fuel prices, materials costs and interest rates. There is also upward pressure on airport and ATC charges, labour costs and maintenance costs.
Against this backdrop, the outlook for European airline profitability is under pressure this year. According to IATA's most recent forecast (Jun-2026), airline EBIT margin in Europe will fall from 6.7% in 2025 to 4.6% in 2026.
Nevertheless, this is still above the 4.4% forecast for the global industry, indicating that the European industry is proving fairly robust.
And yet, there are a growing number of European airlines in restructuring programmes of one form or another.
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