Tag: Travel

Due to the on-going Iran conflict in the Middle East, the world can say a farewell to cheap flights, especially for those wishing to connect between Asia and Europe. Recent data released shows ticket prices rocketing, up by 560% this month. According to a number of aviation experts, the world’s busiest and largest transit corridors are airports located within the Persian Gulf region, as such, prices are expected to remain elevated throughout the summer on to autumn, and likely even the Christmas period. 

The disruption to flights, which began on 28^th February, has resulted in circa 70,000 flights being cancelled. This combined with rising fuel costs (jet fuel has more than doubled), reduced capacity and the shutdown of airspaces, has experts expecting elevated airfares to remain well into late November and likely into January 2027. Experts within the aviation arena suggest that price reductions to jet fuel may take a minimum of twelve weeks to work their way through to the airlines, depending on how quick supply lines become unfettered. 

The disruption to the Persian Gulf corridor is reflected in prices from Hong Kong to London, where an average fare is now circa $3,318, an increase of 560% on February prices. Other examples are the Sydney to London route (AKA the Kangaroo Route) which fares are up 429% for the same period, as well as Bangkok to Frankfurt, which has spiked to $2,870 and increased by 505% for the same period. Analysts advise that jet fuel accounts for around one third of operating costs and a number of airlines have already raised fuel surcharges. Pan European flights are expected to raise prices of tickets in the near future, as jet fuel increases are passed onto customers.

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.