Flights cut, fares skyrocket worldwide amid Middle East unrest

• Jet fuel prices nearly double, pushing carriers towards financial dilemma
• Airlines from Asia to Europe respond with fuel surcharges
• Crisis threatens to derail peak tourism season as consumers reassess plans

PARIS: A war in Iran has sent the global aviation industry into a tailspin, forcing the widespread cancellation of flights after the closure of key Middle Eastern hubs and triggering a surge in airfares as jet fuel prices skyrocket.

Tens of thousands of passengers have been stranded after hubs in Dubai, Doha and Abu Dhabi were shut down, while the price of jet fuel has doubled in recent days to between $150 and $200 per barrel, upending airline finances.

The ongoing US-Israeli war on Iran and the subsequent threat to choke off traffic in the Strait of Hormuz, a vital energy route, is directly responsible for the chaos.

Middle Eastern carriers have been hit the hardest.

The UAE’s Emirates is operating a reduced flight schedule, while Etihad Airways has resumed a limited schedule from Abu Dhabi.

Qatar Airways is also operating a limited schedule from Doha following temporary authorisation.

Elsewhere in the region, Saudia Airlines suspended flights to Amman, Kuwait and Doha, while Turkish Airlines removed Iran flights from its programme until March 12 and cancelled routes to Iraq, Syria and Lebanon until March 13.

The disruption has rippled across Asia.

Hong Kong’s Cathay Pacific cancelled all flights to and from Dubai and Riyadh until March 31. Japan Airlines suspended its Tokyo-Doha route until March 21, and Malaysia Airlines suspended all flights to Doha until March 13.

European carriers followed with extensive cancellations. The Lufthansa Group suspended flights to Tel Aviv through April 2 and to regional hubs like Dubai and Abu Dhabi until March 15.

Air France cancelled flights to Tel Aviv and Beirut through March 15, while partner KLM suspended its Tel Aviv flights for the rest of its winter season and its Dubai flights until March 28.

British Airways-owner IAG cancelled flights to Abu Dhabi until later this year and multiple other regional destinations until later this month.

North American airlines also cut routes, with Air Canada cancelling all flights to Tel Aviv until May 2 and to Dubai until March 28. Delta Air Lines has cancelled its New York-Tel Aviv route until March 22.

The crisis has inflicted a severe financial blow, with soaring fuel costs being passed on to customers.

Asian carriers have been among the first to raise prices. Air India announced a surcharge of $4.30 on domestic flights and $20 on Southeast Asian routes, with increases of up to $200 for North America coming March 18.

Hong Kong Airlines said it would raise fuel surcharges by up to 35.2pc from March 12. Australia’s Qantas and Thai Airways have also announced fare hikes.

“Since early March 2026, aviation turbine fuel (ATF), which accounts for nearly 40 percent of an airline’s operating costs, has seen significant price escalation,” Air India said in a statement Tuesday.

European airlines have had a mixed response, largely due to their fuel hedging strategies. Lufthansa and Air France-KLM said they have secured a fixed price for the majority of their fuel needs for the coming months. In contrast, Scandinavian airline SAS announced a “temporary” price increase.

US carriers, however, could be more vulnerable. A report by Bernstein analysts noted that United, Delta, and American “do not hedge”.

United Airlines CEO Scott Kirby said on March 6 that he expects a “meaningful” hit to the carrier’s first-quarter results.

Analysts warn that if oil prices remain high, airlines will have no choice but to pass on the increases. The timing is critical, as the war has erupted just as travellers in America and Europe book for the peak summer season.

“This conflict is already having a negative impact on people’s willingness to travel. If you raise ticket prices, it’s going to be a [new] negative effect,” said Transavia France CEO Olivier Mazzucchelli on Tuesday.

Published in Dawn, March 12th, 2026