Airlines and travel operators worldwide were forced into emergency mode as a newly escalated U.S. and Israeli air campaign against Iran shut key Middle Eastern air routes and prompted mass flight cancellations. Major Gulf hubs, including Dubai - the worlds busiest international airport - stayed either closed or heavily constrained for a fourth consecutive day, leaving tens of thousands of passengers with disrupted itineraries.
Data from Flightradar24 showed roughly 21,300 flights cancelled at seven major airports including Dubai, Doha and Abu Dhabi since the strikes began. Industry observers said the stoppage - which has seen more than 20,000 flights scrubbed over a handful of days - has not only branded itself as one of the most disruptive episodes since the COVID pandemic but also placed substantial strain on cargo movements that underpin global trade flows.
"Its pretty well the biggest shutdown weve seen certainly since the COVID pandemic," said Paul Charles, CEO of luxury travel consultancy PC Agency, warning that disruptions to cargo could amount to "billions of dollars."
Governments responded with evacuation and repatriation plans as travelers sought to escape the increasingly uncertain region. The UAE government said 60 flights had taken off using dedicated emergency air corridors and that the next phase would include operating more than 80 flights aimed primarily at repatriating stranded passengers.
In addition, the United States was arranging military and charter flights to evacuate Americans in the region, a U.S. State Department official said on X on Tuesday, noting contact with nearly 3,000 U.S. citizens. The department faced criticism from some U.S. lawmakers who said the administration should have advised citizens to depart before the strikes began.
Passengers stranded across Gulf hubs scrambled for seats on the limited number of repatriation flights. Some carriers based in the region - Emirates, flydubai and Etihad - had been operating a restricted schedule since Monday, focusing largely on bringing people home. The curtailment of normal service has narrowed the usual air corridor used for long-haul flights between Europe and Asia, complicating schedules and network planning for global carriers.
Travel demand quickly shifted to alternative routes. Reuters checks found surging bookings and higher fares on routes such as Hong Kong-London as travelers sought ways to bypass the disrupted Gulf hubs. Analysts warned that a prolonged conflict could cost the Middle East billions in lost tourism revenue.
"We cant get home, we cant go back to work, we cant get the kids back to school," said Tatiana Leclerc, a French tourist stuck in Thailand after a journey that had been scheduled to connect via Gulf hubs.
Some carriers signalled limited resumption of services. Virgin Atlantic said on Tuesday it would resume scheduled services between Londons Heathrow Airport and Dubai or Riyadh, an early sign of partial normalization on certain routes.
Market reaction was immediate. Airline stocks fell on Tuesday in most markets, though U.S. shares pared losses later in the session and some carriers staged recoveries. The operational and financial impact differed across carriers depending on factors such as hedging strategy, cargo exposure and network flexibility, Karen Li, J.P. Morgans head of Asia infrastructure, industrials and transport research, said.
Oil prices jumped as the conflict widened, with benchmark crude up roughly 30% so far this year. That spike threatens to push jet fuel costs higher and squeeze airline margins, given that fuel is typically the second-largest operating cost after labor and many airlines no longer hedge fuel purchases comprehensively.
Delta Airs latest annual filing shows that each one-cent increase in the price of jet fuel per gallon translates to about $40 million in additional annual fuel expense for the carrier; Third Bridge analyst Peter McNally noted that a 10% rise would add roughly $1 billion to Deltas 2026 fuel bill.
U.S. carriers initially traded lower before trimming losses, with Deltas shares turning positive in afternoon action. Southwests shares fell 0.6%.
European airline stocks were hit more deeply in early trading. Wizz Air, IAG (owner of British Airways), Lufthansa and Air France KLM closed between 5% and 8% down. Ryanairs CEO Michael OLeary told Reuters the carrier was hedged for the next 12 months at about $67 a barrel and that recent volatility would not affect its business; its shares fell 2.2% on Tuesday.
In the Asia-Pacific region, Qantas Airways CEO Vanessa Hudson said the airline had "pretty good" fuel hedging but acknowledged the spike in oil prices was meaningful for the industry; Qantas shares fell 1.8%. Japan Airlines shares closed down 6.4%, while Korean Air Lines plunged 10.3%, marking its biggest decline since March 2020. Major Chinese carriers including Air China and China Southern Airlines lost between 2% and 4% in Hong Kong and Shanghai trading.
What this means for travelers and markets
- Travelers face limited options as Gulf hub closures cut a key link between Europe and Asia and force reroutes or cancellations.
- Airlines may be pressured by higher fuel costs and lost cargo revenue, with uneven effects depending on hedging and network flexibility.
- Governments are activating evacuation capacity, including dedicated emergency corridors and chartered or military flights.