Iran Conflict Disrupts Gulf Airlines, Costs $200 Million Daily

The conflict in Iran is constricting international travel, particularly impacting major Gulf carriers such as Emirates, Qatar Airways, and Etihad Airways, which are reportedly losing about $200 million daily. Thousands of passengers are stranded due to flight cancellations and rerouting, leading to increased operational costs and disruptions in global air cargo capacity.

Emirates announced a suspension of flights from Dubai until further notice, following advice from the Dubai Civil Aviation Authority. The situation has resulted in the cancellation of around 2,000 flights across seven major Gulf airports, with significant impacts on air freight rates, which have increased by 84%.

Paul Griffith, CEO of Dubai Airport, noted that the airport, which typically handles 320,000 passengers daily, is operating under limited schedules due to the conflict. The instability has prompted airlines to cancel flights to various destinations in the Middle East, with British Airways announcing cancellations until June.