Gulf Airlines Restore Near Prewar Flights but Face Revenue Hit from Iran War and Fuel Spike
Etihad and Emirates have resumed near prewar flight levels, yet the International Air Transport Association projects halved global airline profits and $4.3 billion in losses for Middle East carriers. Hotels in Qatar and Dubai face steep occupancy drops.
SemaforFlights have returned to the Gulf, with Etihad and Emirates operating close to their prewar capacity. The Iran war is nevertheless cutting into airline revenue through higher fuel costs and lost transfer traffic. The International Air Transport Association expects disruptions from the Iran war and a 70% jump in jet fuel prices to halve global airline profits to $23 billion.
3 billion as connecting passenger flows collapse. Hotel performance has deteriorated further. Qatar’s hotels are 60% empty. Dubai occupancy levels are down sharply from 80% before the city was attacked by Iranian missiles and drones.
Hotel owners in the Gulf have slashed rates and are promoting staycations to offset the shortfall. Locals usually book only a night or two, compared with the week-long stays typical of foreign visitors, and many residents will soon depart for the summer. The Gulf spent billions courting tourists, and it remains unclear when they will return.
