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Gulf airlines grapple with long-term cost of war

Mar 10, 2026, 8:29am EDT
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Emirates and Qatar Airways planes sit on the tarmac at Sydney Kingsford Smith Airport in Sydney, Australia.
Hollie Adams/File Photo/Reuters

Services are gradually picking up at the Gulf’s main airports, though a fresh barrage of Iranian drones could quickly force them to close again. The uncertainty of war is prompting some airlines to put expansion plans on hold while they assess the financial impact of the conflict, Bloomberg reported.

There are wider ramifications too. The aviation industry has been one of the Gulf countries’ most visible branding tools but, like the oil now unable to reach export markets, planes have been stranded assets during the war. Even when peace is restored, super-connectors like Emirates and Qatar Airways will likely find it harder to persuade passengers to transit via their hubs. Of those that do, fewer are likely to consider stopovers, which will hit their countries’ hospitality sectors.

In the meantime, fuel and insurance costs have spiked, presenting a further challenge to operations. One small silver lining amid the disruption: Planes stuck at foreign airports have at least avoided the higher insurance premiums they would have incurred if back at base in a warzone.

A chart showing the number of daily flights for 4 major UAE airlines.
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