Airlines across the globe are cancelling thousands of flights as the ongoing conflict in Iran pushes jet fuel prices to unprecedented levels, intensifying pressure on the aviation sector.

Data from aviation analytics firm Cirium shows that nearly one in every 20 scheduled flights was cancelled on Monday. This represents a sharp increase compared with the same period last year, reflecting growing strain on airline operations.

The surge in cancellations follows a dramatic rise in fuel costs. Jet fuel prices, which stood at $742 per metric tonne a year ago, have climbed beyond $1,710. The escalation is largely linked to supply disruptions caused by the closure of the Strait of Hormuz, a critical route responsible for transporting roughly one-fifth of the world’s oil.

Crude oil markets have also reacted strongly, with Brent crude prices reaching as high as $116 per barrel during early trading on Monday. Analysts warn that refining jet fuel requires more crude oil than petrol or diesel, amplifying the impact of supply constraints on aviation fuel availability.

Concerns are now shifting from price increases to potential shortages. According to a report by the Financial Times, the United Kingdom is expected to receive its final known shipment of jet fuel from the Middle East this week.

Aviation analyst Alex Macheras cautioned that multiple markets could face severe fuel shortages within days, including major European airport hubs. He indicated that some airports have begun advising airlines to prepare for scenarios where fuel may not be available.

The disruption is not confined to Europe. Airlines across Asia, Africa, and South America are implementing contingency plans, including additional refuelling stops, as the supply situation deteriorates.

Several carriers have already announced capacity reductions. Air New Zealand has cut 1,100 flights through early May, while Scandinavian airline group SAS plans to cancel 1,000 flights next month, primarily affecting domestic routes.

Meanwhile, Vietnam Airlines has warned it may reduce monthly flights by 10 to 20 percent next quarter if jet fuel prices reach between $160 and $200 per barrel. This could impact up to 18 percent of its international services and more than a quarter of its domestic operations.

In the United States, United Airlines has already reduced capacity by approximately 5 percent on less profitable routes, becoming the first major US carrier to take such measures in response to rising fuel costs.

Chief executive Scott Kirby said sustained high oil prices could increase the airline’s expenses by $11 billion, potentially forcing ticket prices to rise by around 20 percent to maintain profitability. He noted that fares have already increased by 15 to 20 percent in recent weeks, warning that higher prices are likely to dampen travel demand.

Kirby added that in a worst-case scenario, oil prices could climb to $175 per barrel and remain above $100 through 2027.

Beyond fuel-related challenges, the conflict has also disrupted travel across the Middle East. Major European carriers, including British Airways, Air France-KLM, and Lufthansa, have suspended multiple routes to and from the region.

Cirium data indicates that approximately 7,049 out of 104,618 scheduled flights—around 7 percent—were cancelled globally on Monday. By comparison, 4,797 out of 102,132 flights, or 4.7 percent, were cancelled on the same day last year.

The impact has been particularly severe in North America, where cancellations reached 14.6 percent of departing flights, significantly higher than the 4.4 percent recorded a year earlier.

Source: The Telegraph

Saudi carrier flynas has announced the establishment of a new operational base at Prince Naif bin Abdulaziz International Airport in Qassim, in collaboration with airport operator Cluster2 Company. The development makes flynas the first Saudi airline to operate from six different hubs across the Kingdom.

The expansion will begin in July with the launch of the first phase, introducing direct services to five destinations covering both domestic and international routes.

On the international front, flynas will operate direct flights from Qassim to Istanbul, Trabzon, and Cairo’s Sphinx International Airport. The network will also include domestic connections to Abha and Dammam.

The airline said the new base is part of its broader strategy to strengthen its presence across Saudi Arabia and enhance connectivity between regional airports and key global destinations.

Eng. Ali Masrahi, Chief Executive Officer of Cluster2 Company, said the launch represents an important milestone in the organisation’s strategy to expand partnerships and develop wider operational networks across the Kingdom.

He added that the initiative is designed to leverage growing passenger demand and support the introduction of new domestic and international routes, aligning with the objectives of Saudi Arabia’s National Transport and Logistics Strategy, which aims to handle 330 million passengers annually by 2030.

Source: ZAWYA

Airlines operating in the Middle East are projected to move into collective losses in 2026 as escalating regional tensions, restricted airspace access and sharply higher fuel costs place significant strain on the sector, according to the latest outlook from the International Air Transport Association (IATA).

The industry body said that while carriers in other regions are also expected to see weaker profitability, the Middle East is likely to be the only region to post an overall net loss.

Across the global aviation industry, profits are expected to fall substantially. IATA forecasts net earnings declining from $45 billion in 2025 to $23 billion in 2026, with profit margins narrowing from 4.2 per cent to 2.0 per cent.

Willie Walsh, Director General of IATA, said the outlook has deteriorated due to conflict-related disruption in the Middle East and a significant rise in fuel costs. He noted that jet fuel prices have increased by nearly 70 per cent globally, forcing airlines to absorb higher operating expenses despite ongoing efficiency improvements and fare adjustments.

Walsh added that while all regions remain profitable, performance has weakened sharply across the board, except for the Middle East. He said Gulf carriers are operating under considerable uncertainty following major airspace disruptions linked to the onset of conflict, though they continue to maintain global connectivity despite financial pressure.

IATA estimates that global fuel expenditure will rise from $252 billion in 2025 to $350 billion in 2026, accounting for more than 31 per cent of total airline operating costs, compared with 25.4 per cent the previous year.

The projection is based on an average Brent crude price of $95 per barrel in 2026, up from $69 in 2025. Jet fuel is expected to average $152 per barrel, significantly higher than the previous year, while the spread between crude and jet fuel prices is expected to remain elevated.

Although airlines are hedging roughly one-third of their fuel needs, IATA warned that carriers remain exposed to sustained price increases and high refining margins.

Overall fuel consumption is forecast to remain steady at about 104 billion gallons in 2026, meaning that higher fuel prices are the primary driver of rising industry costs.

Walsh also highlighted that the sector’s financial resilience is under pressure, with average net profit per passenger expected to fall to $4.50, nearly half of the level recorded in 2025.

The Middle East is expected to be the most affected region, as geopolitical instability leads to capacity reductions, flight disruptions, and higher operating costs. Reduced transit traffic is also weighing on load factors, further increasing unit costs for airlines.

Despite these challenges, IATA said Gulf carriers continue to work to sustain global connectivity, even as financial headwinds intensify across the region.

Source: ZAWYA

Emirates SkyCargo, the freight arm of Emirates, has announced the launch of a new weekly dedicated freighter service to Almaty International Airport in Kazakhstan, with operations scheduled to begin on 16 June 2026.

The introduction of the Boeing 777F service marks the carrier’s first cargo destination in Central Asia. Operating from Dubai, the new route is expected to create a direct trade corridor that integrates the region more closely into Emirates SkyCargo’s global logistics network.

Almaty, Kazakhstan’s largest city, is emerging as a key commercial and logistics centre, serving as an important gateway for trade across Central Asia. The weekly Tuesday freighter service will offer more than 100 tonnes of cargo capacity each week, enabling the transport of goods such as electronics, perishable items, machinery, and other consumer products between Almaty and international markets via Dubai.

Badr Abbas, Divisional Senior Vice President of Emirates SkyCargo, said the new service aligns with the company’s role in facilitating global trade and reflects its strategy to expand into high-growth regions. He noted that Central Asia is experiencing strong economic development and that the new route will provide businesses in the region with improved access to international markets.

He added that the service will also enhance connectivity for global customers seeking efficient wide-body cargo solutions into a strategically important market, while supporting Dubai’s broader economic objectives under the D33 agenda and reinforcing its position as a global logistics hub.

Emirates SkyCargo continues to expand its freighter fleet in response to rising global demand. Since March 2026, the carrier has received four new Boeing 777 freighters, with six additional aircraft scheduled for delivery later in the year as part of its ongoing network expansion strategy.

Source: ZAWYA

Emirates President Tim Clark has cautioned that a prolonged conflict involving Iran could place weaker airlines under severe financial strain, with low-cost carriers likely to be the first affected.

Speaking on Tuesday ahead of the Berlin Air Show, Clark said extended disruption could lead to failures within parts of the aviation sector, echoing similar concerns expressed over the weekend by International Air Transport Association (IATA) Director General Willie Walsh.

Despite the challenges created by the conflict, Clark said Emirates has no plans to reduce operations. The airline intends to continue transporting passengers through its Dubai hub to destinations including India and Australia, while implementing operational measures such as carrying additional fuel when necessary.

Clark also highlighted Emirates' ongoing rollout of Starlink onboard internet services across its fleet, noting that customer demand had increased following the introduction of the connectivity upgrade.

He stressed that the state-owned carrier would maintain its current capacity levels and was not concerned about the added operational costs associated with the regional situation.

The Emirates chief also reaffirmed the airline’s interest in expanding its presence in Germany. He said demand for flights to Berlin remains strong and noted that the carrier has spent decades seeking approval to serve the German capital. Although Emirates has secured airport slots in Berlin, it is still awaiting regulatory clearance to begin operations there.

Addressing criticism from German carrier Lufthansa regarding alleged regulatory advantages enjoyed by Gulf airlines, Clark rejected the claims. He argued that Lufthansa had also benefited from government support and said the airline should compete independently rather than rely on political backing.

Emirates continues to pursue growth opportunities in key international markets while monitoring the impact of geopolitical developments on the global aviation industry.

Source: ZAWYA

Riyadh Air has announced the addition of five new destinations to its growing network, marking another milestone in the airline’s expansion strategy as it prepares for full-scale operations.

The Saudi carrier, owned by the Public Investment Fund (PIF), revealed on Monday that it will begin serving Cairo, Dubai, Jeddah, Madrid, and Manchester. The announcement coincides with the arrival of the first three Boeing 787-9 Dreamliner aircraft that will form part of the airline’s modern fleet.

According to the airline, the newly introduced routes are intended to strengthen links between Riyadh and key economic, tourism, and cultural centres across the region and beyond. Riyadh Air added that further destinations are expected to be announced in the coming weeks as it continues to expand its network.

The latest route launch follows the delivery of the carrier’s third aircraft, which arrived in Saudi Arabia on Monday. The addition is expected to enhance operational preparedness and support Riyadh Air’s long-term objective of connecting the Saudi capital with more than 100 destinations worldwide by 2030.

Services to Jeddah are scheduled to commence on June 14, followed by Dubai on June 18 and Cairo on June 25. Flights to Madrid are set to begin on July 17, while Manchester services will start on July 23.

The airline also confirmed that it has brought forward the launch of its inaugural London route from July 1 to June 10, 2026, following the earlier-than-expected delivery of new aircraft. Ticket sales through the carrier’s official channels are due to open later on Monday.

Riyadh Air said its Boeing 787-9 fleet will feature advanced cabin technology, upgraded onboard amenities and hospitality services designed to meet international standards, aiming to provide passengers with a premium travel experience.

Source: ZAWYA