NEWS: Airfares Surge as Iran Conflict Disrupts Global Flights
- Discovering Hospitality
- 1 hour ago
- 1 min read
The ongoing conflict involving Iran has led to a significant increase in airfares worldwide, driven by flight cancellations and rising fuel costs. According to aviation data firm Cirium, over 46,000 flights have been cancelled across the region since the conflict began on February 28, resulting in a 10% drop in global airline capacity at its peak earlier this month.
In response, airlines are implementing fare hikes and operational cuts. Air New Zealand, Thai Airways, Cathay Pacific, and Qantas Airways are among those raising prices, with some increases reaching up to 35.2%. Hong Kong Airlines has imposed one of the steepest hikes, while Malaysia Airlines and Singapore Airlines are also adjusting ticket prices.
The conflict is impacting tourism demand, with the Middle East estimated to have lost at least US$600 million per day in international visitor spending. The region accounts for 5% of global international arrivals and 14% of global international transit traffic.
"Travel and tourism is the most resilient of sectors," said Gloria Guevara, President and CEO of the World Travel & Tourism Council (WTTC). "Security-related incidents often see the fastest tourism recovery times, in some cases as quickly as two months, when governments and industry work together to restore traveller confidence."
Some airlines, including Lufthansa and Air France, have not announced ticket changes due to fixed fuel prices. Others have suspended flights to the Middle East, offering refunds or rebooking options.
Industry experts predict travellers may delay bookings for Europe and the Middle East over the next six months unless a peaceful settlement is reached.
