Travel chaos worsens as Iran conflict shuts Mid-East airports
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Planes are parked at Hanoi’s airport amid airspace closures following a simmering conflict in the Middle East.
PHOTO: REUTERS
- Unprecedented flight suspensions across the Middle East caused widespread travel chaos, stranding thousands and leading to a sharp global drop in airline stocks.
- Iranian drone and missile attacks targeted multiple Gulf airports, causing damage, injuries, and one fatality in Abu Dhabi.
- Rising oil prices and longer flight paths significantly increased airline operating costs, destabilising the energy-rich Middle East region.
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DUBAI – Travel chaos extended through the Middle East and beyond, sending airline stocks sharply lower on March 2, as carriers across the Persian Gulf extended blanket flight suspensions, causing major disruptions at some of the world’s busiest airports.
Emirates, the world’s largest international airline, halted all operations to and from Dubai until 3pm (7pm, Singapore time) on March 2 and warned of disruptions through March 5.
Etihad Airways extended cancellations until 2pm on March 2, while Qatar Airways said flights to and from Doha were suspended due to the closure of Qatari airspace.
The disruptions rippled across Asia, with Cathay Pacific Airways canceling some services to the Middle East through March 5. In India, IndiGo’s flight suspensions extended through March 3.
In Europe, shares of the major airlines slumped amid concern that the conflict will deter travel just as the industry heads into the crucial summer period.
Deutsche Lufthansa dropped as much as 11 per cent, British-Airways parent IAG fell as much as 13 per cent and Air France-KLM declined 10 per cent in early European trading.
The conflict is also causing the price of oil to spike, in turn increasing the cost of fuel for airlines, their single-biggest expense. The closed airspace means that many aircraft will need to take longer flight paths, again driving up their operating costs.
US President Donald Trump said the bombing campaign against Iran would continue until its objectives were achieved, sending airline stocks plunging as investors digested the impact of axed flights, airspace closures and lengthy travel disruptions.
Shares plunge
Cathay fell as much as 7 per cent at the open in Hong Kong, while Singapore Airlines dropped as much as 7.5 per cent. Qantas Airways lost as much as 10 per cent.
The United Arab Emirates’ civil aviation authority said it tended to more than 20,000 affected passengers caught up in the disruption.
Tens of thousands of people have been stranded in a region that functions as a global superconnector, linking any two points on the planet with one single stop.
Several airports in the Gulf were hit in the crossfire, as Iran sent missiles and drones across the region in response to the initial attack on Feb 28 by Israeli and US aerial forces.
Abu Dhabi Airport said one person died and several were injured overnight after the emirate intercepted an Iranian drone. Dubai’s main airport, the world’s busiest international hub, reported damage to a concourse that injured four staff members.
Bahrain’s main airport was targeted by a drone overnight that left damage. Kuwait’s airport was also struck by a drone, and a number of employees sustained minor injuries.
Though the Persian Gulf has become accustomed to disruptions as the skies over large swaths of the Middle East suffered restrictions several times during the past two years, an outright suspension on such a massive scale is unprecedented.
The situation highlights the stakes in the conflict that’s pitting Iran against Israel and the US and has destabilised the energy-rich region.
The extensive suspension of all air services will severely disrupt the finely tuned choreography of global aircraft movements.
Already, many planes and crew are out of position because of the airspace closure, meaning that it will likely take days to work through the backlog even once operations resume. BLOOMBERG
