Travel chaos extended through the Middle East and beyond, sending airline stocks sharply lower on Monday, as carriers across the Persian Gulf extended blanket flight suspensions, causing major disruptions at some of the world’s busiest airports.
Emirates, the world’s largest international airline, halted all operations to and from Dubai until 3 p.m. local time on Tuesday and warned of disruptions through Th
ursday. Etihad Airways extended cancellations until 2 p.m. Monday, while Qatar Airways said flights to and from Doha were suspended due to the closure of Qatari airspace.
The disruptions rippled across Asia, with Cathay Pacific Airways Ltd. canceling some services to the Middle East through March 5. In India, IndiGo’s flight suspensions extended through Tuesday.
In Europe, shares of the major airlines slumped amid concern that the conflict will deter travel just as the industry heads into the crucial summer period. Deutsch
e Lufthansa AG dropped as much as 11%, British-Airways parent IAG SA fell as much as 13% and Air France-KLM declined 10% in early European trading.
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The conflict is also causing the price of oil to spike, in turn increasing the cost of fuel for airlines, their single-biggest expense/ And the closed airspace means that many aircraft will need to take longer flight paths, again driving up their operating costs.
US President Donald Trump said the bombing campaign against Iran would continue until its objectives were achieved, sending airline stocks plunging as investors digested the impact of axed flights, airspace closures and lengthy travel disruptions.
Cathay fell as much as 7% at the open in Hong Kong, while Singapore Airlines Ltd. dropped as much as 7.5%. Qantas Airways Ltd. lost as much as 10%.
The United Arab Emirates’ civil aviation authority said it tended to more than 20,000 affected passengers caught up in the disruption. Tens of thousands of people have been stranded in a region that functions as a global superconnector, linking any two points on the planet with one single stop.
Several airports in the Gulf were hit in the crossfire as Iran sent missiles and drones across the region in response to the initial attack on Saturday by Israeli and US aerial forces.
Abu Dhabi Airport said that one person died and several were injured overnight after the emirate intercepted an Iranian drone. Dubai’s main airport, the world’s busiest international hub, reported damage to a concourse that injured four staff members.
Bahrain’s main airport was targeted by a drone overnight that left damage. Kuwait’s airport was also struck by a drone and a number of employees sustained minor injuries.