Today, Emirates and Etihad Airways are resuming limited flight schedules to key global cities from their UAE hubs. Meanwhile, the threat of missile fire continues to put massive pressure on airlines. Missile and drone threats from the US-Israel war against Iran keep most Middle East airspace closed. Consequently, authorities rely heavily on charter flights and limited commercial seats to evacuate tens of thousands of people.
Etihad Airways will operate a limited flight schedule from Abu Dhabi to around 70 destinations through March 19. These destinations include London, Paris, Frankfurt, Delhi, New York, Toronto, and Tel Aviv. Similarly, Emirates is running a reduced schedule from Dubai to 82 destinations until further notice. Furthermore, Emirates currently accepts transit passengers only if their connecting flights are operating.
Traffic at Dubai Airport has doubled since March 4. However, it still operates at only 25% of its normal capacity. Additionally, Qatar Airways keeps its Doha hub closed but arranges limited relief flights from Oman and Saudi Arabia. From February 28 to yesterday, airlines canceled over 25,000 of the 44,000 scheduled flights in and out of the Middle East.
To support stranded travelers, Malaysia Airlines is adding extra flights from Kuala Lumpur to London and Paris this weekend. Likewise, Sri Lankan Airlines will operate an additional flight between Colombo and London this Sunday.
Repatriation Flights Through Middle East Face Severe Threats
Repatriation efforts remain incredibly dangerous. Yesterday, a French government-chartered flight from the UAE turned back because of missile fire. Early this morning, the first British repatriation flight from Oman finally landed at London’s Stansted Airport after facing significant operational delays.
Meanwhile, travelers describe the situation as absolute chaos. Many passengers are paying exorbitant fees to secure flights out of neighboring regions like Oman. These limited operations hit travelers flying between Europe and the Asia-Pacific region particularly hard. Normally, Emirates, Qatar Airways, and Etihad carry about one-third of Europe-to-Asia passengers and over half of passengers traveling from Europe to Oceania.
Jet Fuel Prices Soar as Airline Stocks Drop
The conflict severely impacts the global economy. Singapore jet fuel prices recently hit a record high of $225 a barrel. Traders attribute this spike to supply shortage concerns from Middle Eastern refiners. Yesterday, the price eased to roughly $195 a barrel. However, this is still nearly double last week’s price.
To mitigate these price spikes, most carriers in Europe, the Middle East, and Africa have hedged 50% to 80% of their fuel costs for the next three months.
Despite these efforts, airline stocks across the Asia-Pacific region took a significant hit today. Air New Zealand plunged 6.4%, and Korean Air Lines dropped 2%. Furthermore, Qantas Airways fell by over 1%, while Cathay Pacific and Singapore Airlines experienced slight declines. Chinese and Japanese carrier shares remained mostly flat.
