PwC Ireland highlights growth opportunities and challenges in 2026 global aviation outlook

Global airline profits are set to hit US$41bn (€34.85bn) in 2026, according to PwC Ireland’s 2026 Global Aviation Outlook, driven by steady passenger growth and recovering airline profitability.

Passenger traffic is forecast to grow 4.9%, slightly below 2025’s 5.2%, while fares are expected to remain flat.

Geopolitical tensions, protectionism, and supply chain bottlenecks—particularly in engines and maintenance, repair and overhaul (MRO)—pose ongoing risks.

Brian Leonard, aviation finance leader at PwC Ireland, said: “The outlook for the global aviation market is positive but not without challenges. On a strategic level, more growth opportunities, including mergers and acquisitions (M&A) in 2026 will continue to transform the aircraft leasing industry landscape. The rapid pace of technology change, including GenAI, offers lessors an opportunity to transform their operating models and position themselves for this future growth.”

Aircraft leasing remains central to the sector, with consolidation expected to continue. New aircraft delivery funding is projected to exceed US$100bn (€85bn), with leasing companies providing roughly 60% of that finance. PwC notes strong competition among lessors and lenders, alongside private credit growth, will maintain funding availability.

Technology adoption, particularly generative AI, is critical to improve efficiency, automation, and data integrity. Sustainability and climate risk remain high priorities, as airlines and lessors strive to meet evolving regulatory requirements. Tax governance, especially amid M&A, also demands attention.

Ireland’s role as a global aviation finance hub is expected to strengthen further, according to Paul Sheridan, aviation finance advisory leader at PwC Ireland.

2026 is shaping up as a year of opportunity for aviation, with profitability and passenger growth balanced against operational and geopolitical challenges.

Read the full article on the PwC report for an in-depth look at aviation finance trends in 2026.