During the International Air Transport Association's annual assembly in Rio de Janeiro, airline executives confronted significant challenges including soaring fuel costs and engine reliability concerns. Fuel prices have more than doubled in some regions since the onset of the Iran conflict, leading IATA to estimate a $100 billion increase in global airline fuel costs. This surge is expected to halve airline profits, with net profits projected to drop from $45 billion in 2025 to $23 billion in 2026. Despite rising fares, airline bookings remain robust, with United Airlines CEO Scott Kirby noting that consumer demand is surprisingly strong. Airlines are adapting by cutting unprofitable routes and managing capacity effectively. On the aircraft manufacturing front, both Airbus and Boeing continue to experience high demand for new jets, with Etihad Airways planning to expand its fleet. However, airline executives voiced frustration over engine reliability issues, as new-generation engines, while promising improved fuel efficiency, require more frequent maintenance than anticipated. This combination of factors has left the airline industry navigating a complex landscape of rising costs and operational challenges.