Asia airlines gain as Middle East disruption sends Europe-Asia fares soaring up to 900%
Bloomberg reports some Asia-Europe airfares have risen by as much as 900% as Middle East airspace closures disrupt major hubs, pushing passengers towards Asian carriers and tightening capacity on key routes.
Bloomberg reported on Friday that airlines in Asia have sharply raised fares—on some routes by as much as 900%—as they absorb shifting travel demand caused by the Iran war and widespread airspace disruptions in the Middle East.
Asian carriers such as Cathay Pacific Airways and Singapore Airlines have become key options for passengers trying to leave the Middle East after US and Israeli strikes on Iran prompted multiple countries to close airspace, forcing major Middle East airlines to suspend large numbers of services.
The disruption has led some European travellers to pay steep prices for one-way tickets to Asia, particularly on flights that avoid routing through the Middle East.
One example cited was a Singapore Airlines one-way economy ticket from London Heathrow to Singapore for March 5, priced at HK$66,767 (about US$8,540)—an increase of more than 900% compared with late-month pricing. One-way fares to Hong Kong were also cited at HK$26,737, up from HK$5,670 in the coming weeks.
Aviation specialists said Asian airlines could benefit in the short term from higher fares, improved cargo yields and a modest gain in market share. However, they noted this is mainly a reallocation of traffic, rather than a structural shift in the global aviation network.
Middle East hubs stall as global capacity drops
Data from OAG Aviation showed that flight suspensions by Middle East carriers—including Emirates, Qatar Airways and Etihad since last weekend—have removed more than 10% of daily international capacity, measured by available seat kilometres.
Separate figures from Cirium indicated that more than 23,000 flights had been cancelled through March 5.
Major hubs such as Dubai, Abu Dhabi and Doha play a central role as transfer points for Europe-Asia travel. Airports in the Middle East handle roughly one-third of the estimated 125 million passengers travelling between the two regions each year.
Linus Benjamin Bauer, founder of aviation consultancy BAA & Partners, was quoted as saying that if the disruption persists, fares could remain elevated for longer. If tensions ease, Middle East airlines could resume services quickly, given the region’s critical role in international travel and trade.
Thailand impact: European routes surge, seats fill up
In Thailand, the Civil Aviation Authority of Thailand (CAAT) said Middle East airspace closures linked to the Israel–Iran fighting have led eight Middle East airlines operating in Thailand to cancel flights, particularly on popular European routes.
As a result, prices on routes still operating—especially to Europe—have risen by more than double in some cases. Thai Airways was cited with one-way fares on the Bangkok–London route rising to over 70,000 baht, compared with an average of over 30,000 baht, with seats reportedly fully booked through next week.
CAAT attributed the sharp rise to strong demand alongside reduced capacity, after the suspension of eight major Middle East carriers that typically carry more than 10,000 passengers a day from Thailand. With fewer airlines operating, prices have climbed in line with market rates, reaching upper limits.
Chai Eamsiri, CEO of Thai Airways International Plc, said bookings on the airline’s direct Europe routes have increased, as passengers travelling between Europe and Thailand who previously connected through the Middle East switch to Thai Airways’ non-stop services. He said many flights are now close to full, with fares moving under dynamic pricing in response to heavy demand. He added that the airline has also received more charter requests from private-sector customers in Thailand and overseas.
