Airline, travel industries scramble with fallout from Middle East conflict

WorldBusiness & Finance
5 Mar 2026 • 12:06 AM MYT
The Manila Times
The Manila Times

One of the longest-running English broadsheets in the Philippines

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LONDON/CHICAGO/SYDNEY — The airline and tourism industries scrambled to deal with the fallout from the escalating United States and Israeli air war against Iran, while governments rushed to bring stranded travelers home from the Middle East following the cancellation of more than 20,000 flights in recent days.

Major Gulf hubs including Dubai, the world’s busiest international airport, remained closed or severely restricted for a fourth day, leaving tens of thousands of passengers stranded. According to Flightradar24, some 21,300 flights have been canceled at seven major airports including Dubai, Doha and Abu Dhabi since the strikes started.

The attacks have upended travel across a growing region with several thriving business hubs that are trying to diversify away from oil-dominated economies. The turmoil also narrows an already-slim flight corridor for long-haul flights between Europe and Asia, complicating operations for global air carriers.

Stranded travelers across the Gulf rushed to secure seats on a limited number of repatriation flights as governments moved to bring passengers home even as explosions tore through Tehran and Beirut. Emirates, flydubai and Etihad have been operating a limited number of flights since Monday, mostly to repatriate stranded passengers.

“It’s pretty well the biggest shutdown we’ve seen certainly since the Covid pandemic,” said Paul Charles, CEO of luxury travel consultancy PC Agency, adding that beyond passenger disruption the cargo impact would run to “billions of dollars.”

Many passenger airlines also move cargo in their aircraft bellies, resulting in disruptions to air freight. Cargo specialist FedEx said by email it was using “contingency measures” it did not describe in the Middle East, after saying earlier in the day that it had resumed pickup and delivery services in the region where possible.

Demand for alternatives to Gulf airlines has surged, with bookings and ticket prices jumping on routes like Hong Kong-London, Reuters’ checks showed on Tuesday. Should the conflict drag on, it could cost the Middle East billions in tourism dollars, analysts estimate.

“We can’t get home, we can’t go back to work, we can’t get the kids back to school,” said Tatiana Leclerc, a French tourist stuck in Thailand, whose flight had been set to go via the Middle East hubs that are a key link between Asia and Europe.

In an early sign of a thaw, Virgin Atlantic said on Tuesday it would resume services as scheduled between London’s Heathrow Airport and Dubai or Riyadh.