A passenger takes pictures of a flight information board at the Chhatrapati Shivaji Maharaj International Airport in Mumbai on March 1, 2026 after India's two largest private carriers IndiGo and Air India suspended flights to all destinations in the Middle East. Thousands of flights have been delayed or cancelled in the biggest disruption to global air transport since the Covid pandemic as airlines suspend services to the Middle East following the US and Israeli attacks on Iran. AFP
As of March 1, 2026, hubs like Dubai, Doha, and Abu Dhabi remain paralyzed, with Cairo International Airport emerging as a strained safe haven handling diversion surges. Economists warn that prolonged tensions could balloon monthly costs into the hundreds of millions, hammering airlines, airports, and supply chains already reeling from Saturday's US and Israeli attacks on Iran.
The shutdowns—spanning Iran, Israel, Iraq, Kuwait, Bahrain, Qatar, UAE, Jordan, and Syria—have grounded operations at the world's busiest international airports. Dubai International, which handled 87 million passengers last year, reported minor damage from an Iranian retaliatory drone strike, injuring four staff. Kuwait International saw Terminal 1 hit with limited damage and minor injuries. Bahrain International sustained material losses without fatalities, and Abu Dhabi’s Zayed International recorded one death and seven injuries. These incidents, confirmed by airport operators and regional reports, have amplified a domino effect, with over 19,000 global delays and thousands of cancellations rippling worldwide.
Cost breakdown: Fuel, fees, and fury
Rerouting long-haul flights around closed skies adds 2-3 hours per leg, inflating expenses by $6,000 to $10,000 hourly on wide-body jets like Boeing 777s and Airbus A380s. Extra fuel burn—up to 20 percent more on Europe–Asia paths—combined with crew overtime and maintenance, erodes thin margins for carriers such as Emirates, Qatar Airways, and Etihad. Juwai IQI global chief economist Shan Saeed pegged aggregate near-term costs above $1 billion should closures persist, citing schedule restructurings that slash connectivity and strand assets.
A single day in Dubai could forfeit $215 million in revenue, factoring grounded flights, lost retail sales, and cargo halts, per analyst projections mirroring past disruptions like the 2022 Ukraine war. Indian airlines alone axed 410 flights on 28 Feb, with 444 more forecast for 1 March, underscoring the toll on high-volume routes. Gulf carriers have suspended dozens of services, while EgyptAir halted 13 regional links, including Dubai, Doha, and Baghdad, until further notice.
Broader economics compound the pain. Crude oil surged $5-7 per barrel on risk premiums, directly hiking jet fuel, which accounts for 30-40 percent of airline operating costs. Overflight fees in alternative corridors, charged by weight and distance, add thousands per flight through Pakistan or southern routes.
Cargo crunch and passenger pileup
Air freight, vital for time-sensitive goods like pharmaceuticals and electronics, faces the sharpest hit. Professor Geoffrey Williams estimated hundreds of thousands of tons disrupted daily from strikes on Dubai and Doha, crippling Europe–Asia–Africa trade lanes in an "economic earthquake." Airports lose dual revenue streams: passengers (70 percent of Dubai's income) and cargo (handling 2.5 million tons annually there alone).
Stranded travellers—hundreds of thousands globally—demand refunds and rebookings, with insurance often covering passenger losses but sparing airlines under force majeure clauses. Williams predicts a short-lived crisis, likely resolving within a week barring intensification, though passengers may foot higher fares long-term as costs pass through.
Cairo's congested lifeline
Amid Gulf chaos, Cairo International Airport (CAI) stands operational on high alert, absorbing diversions from shuttered neighbours. Flight tracking shows traffic piling up as planes skirt closed zones, sparking delays, extended tarmac times, and busier terminals. Egypt's Civil Aviation Ministry urges real-time checks via airlines and Flightradar24, positioning CAI alongside Riyadh and Larnaca as relief valves. Yet, knock-on effects from 19,000-plus delays strain schedules, with EgyptAir's suspensions underscoring caution.
Ripple effects beyond the skies
Prolonged strife risks 40 percent spikes in sea freight rates via Strait of Hormuz threats, per logistics analysts, intertwining aviation with global trade. Tourism hubs like Dubai, reliant on transit traffic, face retail wipeouts in integrated malls. Airlines counter with crew repositions and capacity cuts, but IATA warns of protracted pain if hostilities drag on.
The conflict's timeline remains fluid. President Donald Trump's administration announced strikes Saturday, prompting Iran's retaliation and swift closures. Markets watch for de-escalation, but with military developments hourly, aviation executives huddle in operations centres. For now, the $1 trillion industry, still mending from pandemic scars, braces for a costly detour.
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