The International Air Transport Association has appointed Lahore-born economist Saadia Zahidi as its next director general. She will become the first woman to lead the influential global airline body. Zahidi will take charge on November 1, becoming IATA’s ninth director general. Current chief Willie Walsh will conclude his duties on July 31. Chief Financial Officer Sandrine Le Borgne will serve as interim director general during the three-month transition. Read More: From Caviar to Private Suites: Emirates Wins World’s Top Airline Honor Zahidi currently serves as a managing director and Managing Board member at the World Economic Forum. She has spent more than two decades at the organisation and leads its Centre for the New Economy and Society. IATA Says Zahidi Will Bring Fresh Perspective “The board is very pleased to appoint Saadia Zahidi as director general of IATA. Saadia’s long and outstanding experience at the World Economic Forum will enhance and strengthen IATA as the voice of the world’s airlines,” the organisation said. It added: “Saadia brings the right skills to effectively articulate what our industry needs to continue connecting people and economies safely, efficiently, and sustainably.” The board said Zahidi would bring a fresh perspective while building on IATA’s technical, financial and data capabilities. Read More: Emirates unveils viral new headrest to transform economy travel Accepting the appointment, Zahidi said: “I look forward to working closely with our member airlines, governments, and the ecosystem of partners to build on IATA’s remarkable foundation, ensuring aviation continues to connect the world while embracing innovation, strengthening resilience, and advancing sustainable growth.” Zahidi wrote Fifty Million Rising, which traces the growing participation of working women across the Muslim world. She holds a BA in Economics from Smith College. She also earned an MPhil in International Economics from The Graduate Institute and an MPA from Harvard University. New Chief Faces Aviation Industry Headwinds The Geneva-based organisation has traditionally selected former airline chief executives or board members for its top role. Zahidi enters as an economist from outside aviation, giving IATA a different leadership profile. She will take charge as airlines confront geopolitical disruption, economic uncertainty and higher operating costs. Oil prices have climbed above $100 per barrel amid conflict in the Middle East, increasing pressure on fuel-intensive carriers. IATA also faces growing scrutiny over aviation emissions. Airlines have committed to achieving net-zero carbon emissions by 2050. However, limited sustainable aviation fuel and delays in receiving efficient aircraft threaten that goal. Read More: Japan Airlines Tests Humanoid Robots to Take Over Cargo Jobs at Tokyo Airport Zahidi has previously warned that immediate geopolitical and economic concerns can divert attention from environmental risks. During a World Economic Forum discussion in January, she expressed concern that executives were deprioritising environmental issues while focusing on trade tensions. Her appointment places a Pakistani-born woman at the head of an organisation that supports airlines worldwide. It also comes as IATA seeks to balance connectivity, profitability, operational resilience and environmental responsibility.
Iran Conflict Triggers $100 Billion Shock for Global Airlines
The global airline industry faces a sharp rise in fuel expenses this year after the conflict involving Iran triggered turbulence in energy markets, pushing jet fuel prices significantly higher and squeezing already thin profit margins. The International Air Transport Association (IATA) estimates that airlines will spend an additional $100 billion on jet fuel in 2026, a development that could cut industry profits nearly in half despite strong passenger demand. According to IATA, global airline net profits are expected to fall from $43 billion in 2025 to $23 billion this year. Average profit margins could drop from 4.2% to just 2%, underscoring the financial pressure confronting carriers worldwide. IATA Director-General Willie Walsh said the industry remains vulnerable to external shocks because airlines operate on “wafer-thin margins.” The warning comes as aviation companies continue to recover from the financial damage caused by the Covid-19 pandemic while also coping with supply chain disruptions and aircraft delivery delays. Fuel Price Surge Hits Airlines The latest challenge emerged after the Iran conflict disrupted global energy markets and intensified concerns about the security of the Strait of Hormuz, one of the world’s most important oil shipping routes. Brent crude oil prices climbed sharply during the conflict. Market benchmarks rose from just above $70 per barrel to as high as $120 before retreating to around $93. The volatility had a direct impact on aviation fuel. Industry data cited by IATA showed that jet fuel prices doubled during the initial phase of the crisis before easing later in the year. Even after the correction, average fuel prices remain around 70% higher than earlier levels. Fuel traditionally accounts for one of the largest expenses for airlines. Analysts estimate it can represent between 25% and 35% of total operating costs depending on market conditions and route networks. The higher costs have raised concerns about ticket prices, profitability and the pace of industry expansion. Despite the pressure, IATA said consumer demand for air travel remains relatively strong. Surveys indicate that many passengers expect airfare increases to reflect rising oil prices, while nearly half anticipate spending more on travel this year. Ageing Aircraft Add to Industry Burden Airlines also face mounting operational challenges because manufacturers continue to struggle with production delays. Walsh said the average age of the global airline fleet has now exceeded 15 years, the highest level on record. Aircraft manufacturers and engine suppliers face a backlog of approximately 18,000 orders, forcing many carriers to keep older aircraft in service longer than planned. According to IATA, ageing fleets increase fuel consumption, maintenance requirements and leasing expenses. Walsh estimated that older aircraft alone will add around $11 billion in fuel costs during 2025. He urged aircraft and engine manufacturers to improve reliability and accelerate deliveries, warning that continued production failures would be “unacceptable” for the industry’s long-term stability. While airlines remain profitable overall, the combination of higher fuel bills, ageing fleets and supply chain bottlenecks has created a challenging environment for an industry still rebuilding after years of disruption.
