How The Iran Conflict is Affecting Global Travel as Airline Prices Rocket

Disruption to Major Middle Eastern Hubs

The ongoing war has affected major airline hubs in the Middle East with major Gulf carriers such as Emirates, Qatar Airways and Etihad effectively being grounded. According to data released, this has reduced daily international flight capacity by over 10%. Analysts advise that since the conflict began, global flight cancellations to the Middle East are now in excess of 23,000, which has led to other airlines experiencing a surge in reservations. In some cases this has resulted in airfares increasing by up to 900%. 

Surging Fares and the Shift to Asian Carriers 

Experts advise that Singapore Airlines and Cathay Pacific Airways are two of the best positioned Asian carriers to face down the travel problems created by the current conflict, as passengers flock to Asian airlines to obtain seats between Asia and Europe. In fact, currently, a one-way economy ticket on Singapore Airlines from Heathrow to Singapore has been advertised at US$ 8,450, which experts advise is a 900% increase on fares later in the month. A similar ticket from Heathrow to Hong Kong,  which was advertised two weeks ago at HK$ 5,670 is today costing HK$ 26,737.

Energy Security and Global Market Volatility

China has instructed major refiners to halt exports of gasoline and diesel, and Indian refiner MRPL has advised customers they are halting the export of oil products as these countries along with others seek to protect domestic consumption. With regard to stocks and shares, the Kospi Index in Seoul, which is seen as one the world’s hottest stock markets, took a major beating with a 12% drop yesterday, preceded by 7.2% the day before, being the worst sell-off since 2024 due to Iran war risks. European stocks are slightly higher today, but traders’ attention is focused on the Middle East conflict and the effect a prolonged war will have on shares.

Impact on Global Food Supplies and Supermarket Prices

Supermarket bills are also set to increase as the closure of the Strait of Hormuz has halted 1/3 of global fertiliser supplies, with such exports from Iran of walnuts, almonds, pistachios ,dates and saffron all expected to increase if the conflict does not stop soon. However, on the beef and poultry front, Brazil’s exports could be rerouted from the Middle East to Europe with analysts suggesting this could lead to lower prices for consumers within the EU and the United Kingdom.