The conflict between Iran and Israel has led to substantial disruptions in global air travel, with airlines reporting significant financial losses and operational challenges. The situation has prompted numerous carriers to suspend or reroute flights, particularly in and around the Middle East, as they navigate the complexities of operating in a volatile region.
Following U.S. military strikes on Iranian nuclear and military sites, Iran retaliated with missile attacks on the U.S. Al Udeid Air Base in Qatar. This escalation resulted in the closure of Qatari and UAE airspaces, compelling airlines such as Qatar Airways, Emirates, Etihad, Singapore Airlines, British Airways, and Air India to suspend or reroute flights. Major affected destinations included Iran, Iraq, Israel, and Gulf nations. As of June 24, 2025, 243 flights were canceled globally, with Dubai International Airport experiencing the most cancellations. Multiple carriers have extended regional flight suspensions through late June and mid-July.
The Lebanese airline Middle East Airlines reported a 15-20% drop in passenger volume since the beginning of the conflict. The airline has faced challenges in obtaining aircraft insurance due to operating in a conflict zone. Despite these difficulties, MEA continues to operate, focusing on serving Lebanese expatriates returning home for holidays.
The Israeli aviation sector has also been significantly impacted, with losses amounting to 105 million shekels in the first nine months of 2024. This decline is attributed to reduced international airline operations and a 34% decrease in passenger traffic compared to the previous year. In response, the Israeli Airports Authority plans to implement a further 10% cut in expenses for 2025 to stabilize the financial strain caused by decreased activity at Ben Gurion Airport.
Airlines are also facing increased operational challenges due to the conflict. European carriers, including Air France-KLM, Lufthansa, and Wizz Air, have had to reroute flights through narrower air corridors, leading to higher fuel consumption, longer flight times, and increased operational costs. These detours are exacerbated by rising oil prices, further straining airline operations.
The conflict has also led to the cancellation of planned audits and regulatory reviews for airlines. For instance, India’s Directorate General of Civil Aviation canceled a scheduled annual regulatory audit of Air India, primarily due to the airline’s suspension of operations to the Middle East, Europe, and the East Coast of North America amid escalating tensions.
As the situation continues to evolve, airlines worldwide are closely monitoring developments and adjusting their operations to ensure passenger safety and mitigate financial losses. The conflict underscores the vulnerability of the aviation industry to geopolitical tensions and the critical importance of strategic planning and adaptability in maintaining global connectivity.
