Gulf airlines face chaos as Iran war grounds 52,000 flights and strands millions
Airlines in the Persian Gulf are facing severe disruptions due to the ongoing war in Iran. Since late February, over 52,000 flights have been cancelled, leaving millions of passengers stranded. The crisis has also forced companies like Deel to evacuate employees caught in the chaos.
The region's carriers—Emirates, Qatar Airways, and Etihad—have long dominated global air travel, particularly on routes between Europe and Asia or the southern Pacific. Now, their operations are under pressure, with financial losses mounting daily.
Four decades ago, Dubai launched Emirates, which grew into one of the world's largest and most profitable airlines. Alongside Qatar Airways and Etihad, these carriers now control a significant share of long-haul travel. Last year, they earned an estimated $29 per passenger, boasting the highest profit margins in the industry.
Their dominance is clearest on routes linking Europe with Asia and the southern Pacific. Around one in three travellers from Europe to Asia flies with a Gulf airline, while nearly half of those heading to Australia or the southern Pacific choose them. This stranglehold on key routes has made them indispensable for global connectivity.
The war in Iran has shattered that stability. Since February 28, cancellations have surged, affecting roughly six million passengers. Deel, a payroll company, had to evacuate 500 of its 1,500 employees after they were stranded in Dubai for a corporate event. The broader economic toll is steep, with lost tourist spending projected between $34 billion and $56 billion this year, depending on the conflict's duration.
While Gulf airlines struggle, carriers elsewhere may see a temporary boost. Travellers are rerouting to avoid the Middle East, shifting demand to alternative hubs. History suggests air travel rebounds quickly from crises—whether crashes, terror attacks, or pandemics. If the conflict eases, the region's airlines and airports could recover swiftly.
The war has exposed the vulnerability of the Gulf's aviation hubs, despite their long-standing dominance. With flights grounded and revenues plummeting, the coming months will test their resilience. Yet past trends indicate that once safety returns, passenger numbers—and profits—could climb back just as rapidly.
