The price of tickets connecting Asia and Europe has skyrocketed as major airports in the Middle East, especially Dubai International Airport, the world’s busiest airport for international flights, were closed for the fourth day in a row today (Tuesday) due to the US-Israel war against Iran.
Major hubs in the Gulf shut down
This has resulted in tickets for many popular flights being sold out over the coming days and significantly reduced capacity on routes such as Australia-Europe, where airlines such as Emirates and Qatar Airways typically have a large share of the market.
Unprecedented pressure on travel companies
Australia’s Flight Center Travel Group has seen a 75% increase in calls to its stores and emergency helpline since the crisis began, and teams are working around the clock to help those affected.
Global director Andrew Stark said Australians were rebooking flights to the UK and Europe via alternative routes such as China, Singapore and other Asian centres, or via North America such as Houston.
Long distance routes and high costs
Airlines offering direct flights to Asia-Europe rely on bypassing closed airspace in the Middle East, either north through the Caucasus and then Afghanistan, or south through Egypt, Saudi Arabia and Oman.
However, this increases travel time and fuel consumption, which in turn increases costs as oil prices rise, potentially leading to permanent price increases in the long run.
Subhash Menon, president of the Asia-Pacific Aviation Association, warned that closures across the Middle East would come at a “heavy cost” for some companies, noting that serving Europe at higher costs would hurt companies’ profitability and impact global connectivity.
Companies such as Cathay Pacific (Hong Kong), Singapore Airlines and short-haul Turkish Airlines could benefit from a shift of passengers to routes unaffected by the Gulf, according to aviation consultancy Alton.
Companies make profits while other companies suffer losses.
Prices for flights between Asia and London will rise sharply in the coming days, with a severe shortage of seats, a review of the airline’s website reveals.
An uncertain future for the airline industry
Cancellation data shows that the number of canceled flights at airports in the Middle East is rapidly increasing, with Dubai International Airport accounting for about half of the total number of cancellations at the end of February.
Analysts believe that while the continuation of the crisis will temporarily reshape the map of air transport, shifting transit centers from the Gulf to East Asia and Europe, airlines and travelers alike will bear the costs of new geopolitical turmoil hitting one of the sectors most sensitive to the global crisis.
The disruption is the airline industry’s biggest challenge since the coronavirus pandemic, with thousands of flights canceled and hundreds of thousands of passengers affected.
Airfares between Asia and Europe soared after major airports in the Middle East, especially Dubai International Airport, the world’s busiest airport for international flights, were closed for the fourth day in a row today (Tuesday) due to the US-Israel war against Iran.
Closure of major Gulf hubs
This means tickets will be sold out on many popular routes over the next few days, and seats will be significantly reduced on routes such as Australia-Europe, where airlines such as Emirates and Qatar Airways typically have a large market share.
Unprecedented pressure on travel companies
Australia’s Flight Center Travel Group has seen a 75% increase in calls to its stores and emergency helpline since the crisis began, and teams are working around the clock to support those affected.
Global director Andrew Stark said Australians were rebooking flights to the UK and Europe via alternative routes such as China, Singapore and other Asian hubs, or via North America such as Houston.
Longer routes and higher costs
Companies operating direct flights between Asia and Europe rely on bypassing closed airspace in the Middle East, either north through the Caucasus and then Afghanistan, or south through Egypt, Saudi Arabia and Oman.
However, this would increase flight times and fuel consumption, raising costs amid rising oil prices and potentially leading to permanent price increases in the long term.
Subhas Menon, chairman of the Asia Pacific Airlines Association, warned that a complete shutdown of the Middle East would be a “heavy price” for some companies, noting that expensive services to Europe would hurt companies’ profitability and impact global connectivity.
Airlines such as Cathay Pacific (Hong Kong), Singapore Airlines and Turkish Airlines could benefit in the short term by shifting passengers to routes less affected by the Gulf, according to Alton Aviation Consultancy.
Companies that make profits and companies that suffer losses
A review of the airline’s website reveals significant price increases and a significant shortage of seats on flights between Asia and London in the coming days.
An uncertain future for the airline industry
Flight cancellation data shows that the number of canceled flights at airports in the Middle East is rapidly increasing, with Dubai International Airport accounting for nearly half of the total number of canceled flights in the last few days of February.
Analysts believe the continuation of the crisis will temporarily reshape the map of air transport, shifting hubs from the Gulf to East Asia and Europe, while both airlines and travelers bear the costs of new geopolitical turmoil affecting one of the world’s most crisis-sensitive sectors.
The disruption is the airline industry’s biggest challenge since the coronavirus pandemic, with thousands of flights canceled and hundreds of thousands of passengers affected.
