Global aviation is entering 2026 with moderate growth, higher input costs, and a new wave of strategic deals and technology bets.
On the demand side, the latest IATA data show air cargo volumes up 5.5 percent year on year in November 2025, supported by a 2 percent rise in global goods trade and a fourth consecutive monthly increase in manufacturing sentiment, with the global PMI at 51.17.[1] Within Asia, cargo traffic has now grown for 25 straight months, up 15.8 percent, while Europe’s intra regional flows have declined for four months, down 4.9 percent, underscoring a shift toward Asia Pacific and long haul corridors.[1]
At the same time, jet fuel prices rose 5.9 percent in November despite softer crude, as refinery disruptions, EU restrictions on Russian products, and tight capacity pushed crack spreads to nearly double last year’s levels.[1] Airlines are responding with aggressive fleet renewal and network consolidation.
The clearest example this week is Alaska Airlines’ record order for 105 Boeing 737 10s plus options for 35 more, alongside five additional 787s, announced January 7.[2][3][4] This takes Alaska’s 737 MAX backlog to 174 jets and its 787 order book to 12 aircraft, locking in delivery slots through 2035 and supporting plans to fly at least 12 long haul international destinations from Seattle by 2030.[3][4] The move follows Alaska’s 2024 acquisition of Hawaiian Airlines and signals confidence in long term US demand despite near term cost pressure.[4]
On the finance and supply side, a sale and leaseback of six new Pratt and Whitney PW1900 engines between Porter Airlines and BeauTech highlights continuing tightness in next generation narrowbody engines, but also growing confidence in the Embraer E2 platform as operational reliability improves and the geared turbofan repair network expands.[6]
Advanced air mobility is moving from concept to industrialization. Joby Aviation has just acquired a second facility in Ohio, intended to help double production to four electric air taxis per month in 2027, aligned with a new US national strategy for advanced air mobility and the FAA eVTOL Integration Pilot Program planned for 2026.[7]
Sustainability and loyalty are shaping consumer facing strategies. In Hawaii, a new partnership with Par Hawaii will supply sustainable aviation fuel made from plant oils and used cooking oil to roughly a quarter of Alaska and Hawaiian flights in the islands in coming months.[8] American Airlines, meanwhile, is keeping its AAdvantage status and reward thresholds unchanged for a third consecutive year in 2026, prioritizing predictability for frequent flyers amid ongoing price and schedule volatility.[12]
Compared with reporting a year ago, the industry has shifted from pure post pandemic recovery to capacity discipline, decarbonization pilots, and targeted growth in high yield international and cargo markets, while continuing to work through engine constraints and elevated fuel costs.
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