Air fares between Asia and Europe have surged after major Gulf hubs, including Dubai, partially reopened following closures linked to the conflict between Israel, the U.S. and Iran. Airlines are still rerouting flights around restricted airspace, cutting economy seat supply and pushing up prices.
Many airline companies are facing longer flying times as a result of continuing airspace closure across much of the Middle East. Reports from Qatar say almost 8,000 passengers are currently stranded.
A number of airlines have suspended or cancelled their flights to and from Dubai until at least Wednesday 4th March. Some, including Air Canada and Finnair, have cancelled flights for over two weeks.
Airlines are prioritising repatriation, cargo, and repositioning flights, with services scheduled to destinations including London, Paris, Russia, Pakistan, and Somaliland.
Due to the ongoing conflict, airspace over Qatar is closed meaning some airlines have cancelled or suspended their flights for the remainder of this week. Malaysia Airlines and British Airways are due to restart flights tomorrow (Wednesday 4th March) and Thursday 5th March.
Delays and cancellations are occuring at Zayed International Airport, however airlines are hopeful there won't be disruption into next week. Eithad Airways are doing limited evacuation flights for stranded passengers.
Flights to the Middle East from Istanbul are heavily distrupted with Turkish Airlines and Pegasus both cancelling flights to Iraq, Jordan and Lebanon for at least the next 3 days. Istanbul remains a primary diversion point for flights connecting Europe and East Asia.
Travel stocks plunged on Monday, wiping $22.6 billion off the value of major airlines, hotels and travel companies, as escalating tensions between the U.S., Israel and Iran wreaked havoc on global aviation.
Key Middle Eastern hubs, including Dubai - usually the world’s busiest international airport with more than 1,000 daily flights - remained closed for a third consecutive day, leaving tens of thousands of passengers stranded.
Jordan partially closed its airspace, while the U.S. State Department urged Americans to leave more than a dozen countries in the region, including Saudi Arabia and the UAE.
Oil prices surged by up to 13% to levels not seen since January 2025, raising concerns over higher fuel costs for airlines.
European carriers were hit hard, with TUI down 9.9%, Lufthansa 5.2% and British Airways owner IAG 5.5%, while U.S. airlines such as Delta, United and American saw shares fall between 2% and 4%.
Analysts warned of weeks of disruption, citing flight cancellations, rerouting costs and rising fuel prices, with some projecting historic oil supply interruptions if tanker traffic through the Strait of Hormuz remains limited.
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