Willie Walsh, Director General of the International Air Transport Association (IATA), cautioned that the airline industry may see increased bankruptcies and consolidations this year due to soaring jet fuel prices, exacerbated by the ongoing conflict in Iran. He noted that budget carriers are particularly at risk, lacking the premium revenue streams that larger airlines utilize to mitigate rising costs. Following the collapse of Spirit Airlines, Walsh indicated that more airlines may face similar fates, with route cuts and high fares expected to persist. Current jet fuel prices stand at $141.64 per barrel, reflecting an 11.4% decrease from the previous week. Walsh highlighted that the financial challenges extend beyond fuel costs, citing significant delivery backlogs from major manufacturers like Boeing and Airbus, which cost the industry approximately $11 billion last year. He also mentioned that while Gulf carriers are experiencing disruptions, their long-term strategic positions remain strong. The slow development of sustainable aviation fuels poses additional regulatory uncertainties for the sector, complicating efforts to achieve net-zero emissions by 2050.