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Ceasefire or Not, Challenges Remain for Airlines in the Middle East
Ceasefire or Not, Challenges Remain for Airlines in the Middle East

Skift

time24-06-2025

  • Business
  • Skift

Ceasefire or Not, Challenges Remain for Airlines in the Middle East

Airlines and airports are working hard to stabilize operations after a dramatic 24 hours. Monday's operational fallout was not universal, but ongoing airspace restrictions will continue to have a broad impact. As the Middle East woke on Tuesday morning, mixed reports circulated about the status of the ceasefire between Israel and Iran. News of the deal came just hours after Tehran launched missiles at a U.S. airbase in Qatar in response to earlier strikes on its nuclear sites. Even if a fragile truce holds, many airports and airlines in the region face the challenging task of stabilizing operations after a turbulent day. Rising tensions in the Middle East had already disrupted air travel, but Monday's events reached a new level. Qatari airspace was closed for approximately eight hours, while shorter closures affected flights in other countries, including the UAE and Bahrain. Qatar bore the brunt of the closures, with around 100 inbound flights disrupted, according to Flightradar24. This resulted in dozens of diversions for flag carrier Qatar Airways. Many services returned to their destination, however, others were forced to land at airports in alternate countries. The range of diversionary airports reflected the airline's enormous geographic reach. Passengers on Flight QR809 from Tokyo landed in the Indian city of Ahmedabad, while those on QR732 from Dallas made an unplanned stop in Medina in Saudi Arabia. Other Doha-bound travelers found themselves in Oman, Turkey, or Hungary. Passenger accommodation is likely to be complicated by local visa requirements and strict crew duty limits. On Tuesday morning, the operators of Doha's airport said, 'operations are gradually recovering and returning to normal,' describing the process as a 'transition.' The Broader Impact The disruption was hardest felt in Doha, but other hubs in the region were also impacted. From Dubai, Emirates – one of the world's largest airlines – said in a statement that its passengers 'experienced minimal disruptions to their travel plans' with regularly scheduled flights resuming 'within a few short hours.' The company said none of its flights were diverted, however, there were a 'small number of cancellations' and other services experienced longer flight paths due to airspace congestion. For its part, Dubai Airports – the operator of both passenger airports serving the city – warned that some flights on Tuesday would be subject to delay or cancellation. It especially advised passengers traveling to India to check with their airline for the latest updates. Elsewhere, Oman Air said Tuesday that its flight schedule has returned to normal, with only minor delays following cancellations on Monday. Etihad Airways said its services were operating as scheduled, however, there are residual delays at its Abu Dhabi hub. Due to the Middle East airspace closures and associated route congestion on Monday, Qantas' #QF33 to Paris returned to Perth. The aircraft has just touched down after 15 hours in the air. — Flightradar24 (@flightradar24) June 24, 2025 Outside the Middle East In other developments, Air India confirmed Tuesday that it will resume flights to the Middle East. The flag carrier suspended all services to the region, plus Europe and North America on Monday. Air India said most Middle East flights will resume from June 25, with European services "progressively reinstated.' Timings for U.S. East Coast and Canadian routes are less clear with these to resume 'at the earliest opportunity.' A statement from the airline added: 'Some flights may experience delays or cancellations due to consequential impacts and extended re-routings/flight times, but we are committed to minimizing disruptions and restoring our schedule integrity.' The airline's international flying was already down 15% due to the June 12 crash of an Air India jet in Ahmedabad, compounding this week's volatility. Meanwhile, IndiGo, the country's largest airline, said Tuesday that operations into, out of, and through the Gulf 'have stabilized and are operating as scheduled,' however it warned that travel times on some routes could be longer than usual due to continued airspace restrictions. Elsewhere, British Airways canceled its twice-daily flights between London and Doha until June 26. This will add additional pressure on those services that continue to operate. Late June is already a busy time for the airline industry, with limited spare capacity to rebook affected passengers. BA customers due to travel to Dubai or Doha can rebook without penalty up to July 13. Looking Ahead Before the spike in violence earlier this month, the airspace above Iran and Iraq had been used by more than 1,400 daily flights linking Asia, Europe, and North America. Most carriers have now rerouted, adding pressure to alternative corridors and extending flight times. The problem is compounded by the closure of Russian airspace to most Western airlines, and other restrictions over Belarus and Ukraine. In these uncertain hours, the reported ceasefire between Israel and Iran will do little to solve the logistical challenges facing airlines flying to, or through, the region. For example, low-cost giant Air Arabia has suspended all flights to and from Russia, Azerbaijan, and Georgia until July 1. Even flights that continue to operate may be subject to delays or rerouting. Elsewhere, Wizz Air is canceling all flights to and from the UAE until June 30. Other carriers including Turkish Airlines are offering travel waivers for selected destinations until July 31. The View from Dubai Skift's Middle East Reporter Josh Corder offers his perspective on regional events: Dubai and its neighbors are no strangers to geopolitical shocks: 9/11, the Arab Spring, and more recently, the Israel-Hamas war have all tested the region. Through it all, the UAE has consistently marketed itself as a safe haven. 'We always have faced trouble. This region always has conflict, but the UAE leadership has this sort of openness,' said UAE Minister of Economy Abdullah bin Touq Al Marri last October. 'Safety and security are one of the highest things [in the UAE]. We are in the eye of the storm.' In April, Dubai Tourism CEO Issam Kazim acknowledged the ripple effect global instability can have on travel. 'Obviously, we know today we [Dubai] are a global community, everyone is interconnected to a certain degree, where any changes happening impact the entire world,' Kazim said. 'Travel trade has always been part of that, and it tends to get impacted.' While any disruption is unwelcome, the timing may blunt the immediate tourism fallout. June through August is traditionally Dubai's shoulder season when high heat drives down visitor numbers. Dubai had around 1.2 million visitors in June last year compared to 1.9 million in December, according to government data. Still, the longer-term concern may lie in sentiment, especially among residents. Dubai's population of 3.9 million is 80-90% expatriate. Many have family elsewhere, as well as exit strategies should the city no longer feel safe. Keeping those expats happy is paramount to keeping Dubai functioning. What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance. Read the full methodology behind the Skift Travel 200.

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