Airline losses rise as conflict escalates in the Middle East
The aviation and tourism sector in the Middle East has faced an unprecedented crisis following the escalation of conflict between Israel and Iran, with over 21,300 flights canceled since the onset of strikes, leading to near-total paralysis at major airports in the region, rising oil prices, and increasing fears of billions of dollars in losses.
Major airports in the Gulf, including Dubai International Airport, the busiest in the world, have remained closed or operating under strict restrictions for the fourth consecutive day, leaving tens of thousands of passengers stranded.
Seven major airports in the region, including Dubai, Abu Dhabi, and Doha, have seen thousands of flights canceled, according to data from FlightRadar24.
Travel in the region, which is a key commercial hub seeking to diversify its economy away from oil, has been affected, and global airlines are facing increased pressure due to reliance on long air corridors between Europe and Asia, complicating their operations.
* Travelers seek an exit
Stranded travelers across the Gulf rushed to book limited seats on emergency flights organized by governments to repatriate their citizens, as explosions continue to threaten cities like Tehran and Beirut.
Reports indicate that airlines such as Emirates, Flydubai, and Etihad Airways are offering limited flights since Monday to return passengers to their home countries.
Paul Charles, CEO of the travel consultancy PC Agency, stated: "This is the largest shutdown since the COVID pandemic," adding that the impact on air freight alone could reach billions of dollars, in addition to disrupting passenger traffic.
* Disruptions in air freight
Losses have not been limited to passengers, as passenger planes also transport goods, leading to disruptions in freight services.
FedEx announced it has resorted to "emergency measures" in the Middle East, after resuming pickup and delivery services where possible.
* Emergency evacuation efforts
The UAE government announced the operation of 60 flights within designated emergency air corridors, with plans to increase flights to over 80 in the next phase.
The United States has also arranged military and emergency flights to evacuate about 3,000 American citizens from the region, amid criticism for not advising citizens to leave before fighting broke out.
* Impact on global airlines
Delta Airlines has suspended its flights between New York and Tel Aviv until March 22, providing rebooking options and waiving travel fees for affected customers until the end of the month.
Data also showed an increase in demand for alternatives from Gulf airlines, with rising ticket prices for routes such as Hong Kong to London.
In an attempt to resume activity, Virgin Atlantic announced it would resume services between Heathrow Airport in London and Dubai or Riyadh as scheduled, but shares of global airlines have fallen amid growing concerns over additional losses.
* Oil and the economy
The escalation of conflict has led to a nearly 30% rise in oil prices since the beginning of the year, threatening to increase aircraft fuel costs and adding pressure on the profits of airlines and tourism companies in the region.
