Global airlines felt the effect of the escalating conflict in the Middle East, as missile exchanges forced carriers to navigate around a wide swath of territory, tear up flight schedules and turn around aircraft mid-flight.

Qatar suspended flights over its airspace shortly before Iran launched a missile strike at a US air base in the country around 7.45pm on Monday local time (2.45am Tuesday AEST). Qatar’s move effectively halted operations of its namesake airline and forced dozens of flights from carriers including Etihad, Emirates and FlyDubai out of position. Other Persian Gulf states followed suit, including Bahrain and Kuwait.

Flights diverted around the Gulf as Iran fired missiles at a US base in Qatar early on Tuesday morning (AEST).Credit: Flight Radar 24

Flights in and out of Dubai International Airport, the world’s busiest hub, were temporarily suspended and the United Arab Emirates closed its airspace as a precautionary measure, according to a person familiar with the matter. However, Dubai Airports later said that it had resumed operations after a brief flight suspension, the Dubai Media Office posted on X.

Dozens of Gulf-bound flights on several commercial airlines were diverted en route to safer airports in the Egyptian capital of Cairo, India and Belgium, including those from London and Zurich to destinations like Dubai and Qatar, based on data from aviation consultant Cirium.

The disruptions are the most consequential yet for air traffic in the region. Qatar Airways runs a global operation out of its Doha hub, connecting more than 170 destinations worldwide. Turkish Airlines suspended service to Gulf destinations including Dubai, home to one of the world’s busiest airports, while other airlines, including Singapore Airlines and British Airways cancelled flights.

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The latest developments signify a widening of the war between Israel and Iran after US President Donald Trump joined the fight on Sunday by attacking Iran’s nuclear sites. The dramatic escalation – and Iran’s retaliation – risk disrupting economies that were previously shielded from the fallout of regional hostilities.

Qatar and nearby Dubai have spent decades turning themselves into global aviation powerhouses, meaning that any narrowing or outright closure of air service creates a serious knock-on effect for the travel industry. Doha and Dubai are only a short distance from Iran, sitting on the other side of Persian Gulf and not far from the Strait of Hormuz, a key shipping artery for the world’s oil supplies that has become a flashpoint in the growing conflict.

Dubai is home to Emirates, the world’s largest international carrier. Hamad International Airport in Doha, in the capital of Qatar, is among the 10 largest, operating more than 500 flights a day. Together, they handle much of the traffic within the Middle East and are transfer points for long-haul travel between Asia, Europe and North America. They had avoided previous suspensions that were contained to countries surrounding Israel and the skies over nations where Iran’s missiles pass.

Prior to the US strikes on Sunday, Tehran had threatened to hit US bases in the Persian Gulf should Washington get involved, and close down Hormuz. The Al Udeid base in Qatar hosts the regional headquarters for the US Central Command, which oversees the American military in the Middle East.

It’s the largest US base in the region, while Bahrain is home to the US Navy’s Fifth Fleet.

“A widening conflict around the Strait of Hormuz could threaten to disrupt global airline traffic, particularly if flight restrictions to key transfer hubs in Qatar and the UAE were to occur,” Bloomberg Intelligence analysts Eric Zhu and George Ferguson wrote in an earlier note. Excluding local carriers, Indian airlines including IndiGo, Turkish Airlines and British Airways are among the most exposed, they wrote.

Dubai is home to Emirates, the world’s largest international carrier.Credit: AP

Shares of the major network carriers fell, including Air France-KLM, Deutsche Lufthansa AG and BA parent IAG SA in Europe. United Airlines and Delta Air Lines declined in US trading.

Singapore Airlines has halted flights to Dubai from the city-state since Sunday over security concerns.

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British Airways diverted a Dubai-bound flight to Zurich after it reached Saudi Arabia’s airspace in the early hours of Sunday, according to data from Flightradar24. Another jet returned to Heathrow after going as far as Egypt.

The London-based carrier earlier halted routes to Bahrain through the end of the month due to operational constraints and airspace restrictions.

Asian airlines have also taken steps to safeguard passengers and crews. Japan Airlines Co. said earlier it would have flights between Tokyo’s Haneda airport and Doha avoid airspace above the Persian Gulf and Gulf of Oman. Air India will progressively avoid using certain airspace over the Persian Gulf in the coming days.

Even before the US strikes, several American and European airlines had paused flights to the United Arab Emirates and Qatar after Israel started bombarding Iran.

The skies over large swaths of the Middle East have been restricted several times during the past 20 months, making flying through Israel, Jordan, Lebanon, Syria, Iraq and Iran difficult.

The closures have forced airlines to cancel flights on profitable routes, spend more on jet fuel and pass through countries they usually avoid, like Afghanistan, as they avoid dangerous skies. It has also meant hundreds of disrupted flights and thousands of stranded passengers.

Israel has started to allow outbound flights after halting them since its latest attacks on Iran starting on June 13. Tel Aviv is expected to let about 1000 passengers leave the country daily from Ben Gurion Airport and Haifa.

The UK is organising a chartered flight for British nationals who want to leave Israel, while Germany sent a military transport plane to extract citizens, and France said it also plans repatriation flights.

“Everything depends on how long this lasts,” Ziad Daoud, chief emerging markets economist at Bloomberg Economics, said of the fallout from the flight cancellations. “If there was a stoppage of flights for a day or two, there won’t be an impact, but if this is a prolonged thing, then obviously it’s an issue.”

More to come

Bloomberg

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