The disruption triggered by the Iran conflict unfolded with a speed and intensity few in the airline industry would have anticipated outside of a global shutdown. Of the 92,000 flights scheduled in and out of the Middle East between February 28 and March 12, more than 49,000 did not operate. That is over half the region’s traffic, grounded within days.
More than a month later, the system has not normalized. Airspace closures across the Gulf continue to drive more than 4,000 daily flight cancellations, affecting hubs that collectively handle roughly 15% of global air traffic. What began as a shock has become a sustained operating condition.
The economic signals reinforce the picture. Fares on key corridors surged dramatically in the early days of the crisis. Abu Dhabi to Kochi went from $131 to $2,555. Abu Dhabi to Delhi from $147 to $1,681. Pricing has partially moderated, but volatility remains.
For the Gulf carriers at the center of this ecos
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