Escalating tensions in the Middle East are sending shockwaves through the global aviation industry, forcing airlines to reroute flights, pushing ticket prices sharply higher and prompting governments to introduce emergency visa measures for stranded travellers.

Airspace closures and safety advisories across parts of the region have forced carriers to redraw flight paths that traditionally pass through some of the world’s busiest aviation corridors linking Europe, Asia and Africa.

For airlines, the changes have triggered a chain reaction of logistical challenges, longer flight times, higher fuel consumption and tighter aircraft availability.

Read more-Airlines raise fares as Middle East conflict lifts fuel costs, disrupts flights

“Commercial aviation depends heavily on predictable air corridors,” said aviation analysts tracking the disruption. “When those corridors suddenly become unavailable, the entire network has to adapt.”

Flights that once crossed the Middle East directly are now detouring around sensitive airspace, adding significant distance to already long-haul journeys.

Private aviation demand surges across the Gulf

While commercial airlines grapple with rerouting challenges, the private aviation sector is experiencing a surge in demand.

According to industry executives, clients seeking flexibility and schedule certainty are increasingly turning to charter flights.

“Since the situation in the region escalated and airspace closures came into effect, we have seen a dramatic surge in demand for private charter across the Middle East,” said Nader Al Hakim, charter sales at ExecuJet Middle East.

“This spike in demand, combined with reduced aircraft availability, longer routing requirements to avoid high-risk zones, rising fuel costs, and significantly higher insurance premiums for regional operations, has resulted in a sharp increase in charter prices,” he said.

Private jet operators say the current market dynamics have significantly tightened supply.

Aircraft must now navigate longer routes to avoid restricted airspace, while insurers have raised premiums for operations in sensitive areas.

“These are market realities we have been transparent about with our clients,” Al Hakim added.

Operational challenges multiply for aviation companies

The rapidly evolving regional situation has also made day-to-day operations more complex for aviation companies.

Private aviation firms report challenges ranging from repositioning aircraft and crew to navigating shifting insurance requirements.

“Day-to-day operations have become considerably more complex,” Al Hakim said.

“Our teams are managing longer flight routings to circumvent restricted airspace, coordinating the safe repositioning of crew from high-risk areas, and navigating insurance terms and premiums that are shifting frequently in response to the evolving regional landscape.”

The disruption has also increased demand for aircraft parking and storage.

“We have also seen heightened demand for hangarage as a result of the current environment,” he added.

At the same time, airports across the region have been adjusting operations to accommodate the changing situation.

“From an operational standpoint, one of our immediate challenges was slot availability, as airport operations in Dubai were temporarily constrained,” Al Hakim said. “We are pleased to say that the situation has been improving steadily over the past few days, and we currently have both of our facilities fully operational.”

Despite the operational strain, he said the company continues to prioritise service reliability.

“Private aviation exists precisely to offer flexibility and reliability when it matters most, and our teams are working around the clock to ensure we continue to deliver that, even in the most challenging environments.”

Ticket prices climb as airlines reroute and fuel costs rise

The disruption is also being felt by commercial airline passengers.

Industry analysts estimate that ticket prices on several affected routes have risen between 10 per cent and 25 per cent since the escalation of tensions.

“Ticket prices have risen by approximately 10–25 per cent on affected routes since tensions escalated, driven by rerouting surcharges and reduced capacity as airlines avoid Middle East hubs,” said Alena Iakina, founder of visarun.ai.

Long-haul flights linking Gulf hubs with Europe and North America have seen some of the sharpest increases.

“Fewer discounted seats are available as airlines focus on revenue recovery during the disruption period,” she said.

Rising fuel prices are also contributing to the increase.

“Jet fuel accounts for 20–30 per cent of airline operating costs,” Iakina said. “Rising oil prices driven by Gulf supply fears and risks around the Strait of Hormuz are pushing those costs higher.”

Airlines are absorbing part of the increase, she added, but much of the additional cost is passed on to passengers through higher fares and fuel surcharges.

Governments introduce visa extensions for stranded travellers

As flight disruptions ripple across the region, several Gulf countries have introduced temporary visa measures to assist travellers unable to depart because of cancelled or delayed flights.

“Yes, several Gulf countries have introduced automatic visa extensions and overstay waivers for stranded travellers,” Iakina said.

Qatar’s Interior Ministry has extended all entry visas by one month at no cost, while authorities in the UAE have issued more than 15,000 emergency entry visas to affected passengers.

Kuwait has also waived overstay fines for travellers who were unable to leave due to flight disruptions.

“These rules apply to visitors who cannot leave because of cancellations, although older overstays may still face penalties,” Iakina said, adding that further extensions remain possible if the disruption continues.

Airlines roll out flexible policies and refunds

Airlines have also introduced flexible booking policies to help passengers cope with the uncertainty.

Several major carriers are allowing travellers to rebook flights without penalties or request refunds for affected journeys.

For example, Emirates has offered free rebooking until March 20 for tickets issued on or before March 5, with full refunds available for affected departures.

Qatar Airways is providing fee-free rebooking within 14 days of the original travel date for certain bookings, while Etihad Airways has issued waivers allowing passengers to change affected flights departing from Abu Dhabi.

Other international carriers, including Turkish Airlines, Lufthansa and United Airlines, have also introduced similar measures.

Travel experts say passengers should check directly with their airlines, as deadlines and conditions are frequently updated.

Travellers change how they plan trips

The uncertainty surrounding flight disruptions has also begun to reshape travel behaviour.

Many travellers are now prioritising flexibility over price, opting for refundable tickets or insurance add-ons that allow cancellations. “Uncertainty has shifted planning toward flexible, refundable tickets and multi-hub itineraries to avoid single-point failures,” Iakina said.

Travellers are also building additional buffers into their travel schedules. “Many people are allowing two to three extra days between connections to account for possible delays or cancellations,” she added.

Corporate travel has also been affected, with many companies postponing non-essential trips until the regional situation stabilises.

Meanwhile, leisure travellers are increasingly purchasing “cancel for any reason” insurance coverage, even though such policies often carry additional costs and limitations.

Global travel faces a period of uncertainty

Despite the disruptions, aviation experts stress that global travel networks remain operational, though under increased strain.

Airlines, airports and governments are continuing to adapt to the evolving situation while prioritising safety. For travellers, however, the rapidly shifting aviation landscape means one thing: planning a journey now requires more flexibility than ever before.

With rerouted flights, rising fares and shifting immigration policies, the turbulence triggered by regional tensions is being felt far beyond the Middle East, across the entire global travel system.

South Korea’s customs authorities said on Thursday that they would ramp up a crackdown on illegal car exports to Russia after discovering a growing number of vehicles being sent to Russia via third countries such as China, Kazakhstan and Kyrgyzstan.

Illegal vehicle exports from South Korea to Russia jumped more than five-fold to 149.2 billion won ($100.78m) last year compared to 2024, when Seoul tightened export restrictions in response to Russia’s full-scale invasion of Ukraine, Korea Customs Service said in a statement.

Some traders falsely reported to the customs office that the cars were being exported to neighbouring countries such as Kazakhstan and Kyrgyzstan even though the final destination was Russia, it said.

Others bought new cars, “disguised” them as used cars and shipped them to Russia, through third countries.

A customs official said many of those vehicles were German premium brands imported to South Korea.

Since 2024, Seoul has required vehicles with an engine of more than 2.0-litres to have a permit for export to Russia. Those who break the law face a prison term of up to seven years or a fine of up to five times the value of the goods.

Tens of thousands of cars are being exported from China to Russia under grey-market schemes that often circumvent Western and Asian government sanctions, and automakers’ commitments to exit the Russian market, Reuters reported in February.

Standard Chartered’s regional chief executive Rola Abu Manneh said the bank’s operations in the UAE are continuing without interruption, despite precautionary work-from-home arrangements for some staff in Dubai.

In a LinkedIn statement on Wednesday, Abu Manneh — CEO for UAE, Middle East and Pakistan — addressed reports circulating about the bank’s Dubai offices, emphasising that services remain fully operational.

“Our banking services in the UAE continue without interruption, reflecting the resilience of our operations and the strength of our business continuity arrangements,” she said.

Abu Manneh added that the bank had extended remote working for many teams as a precautionary step while ensuring continued service for clients and partners.

“As part of these arrangements, we have extended work-from-home for many of our teams as a precautionary step that prioritises the safety and wellbeing of our colleagues while ensuring uninterrupted support for our clients and partners,” she wrote.

Her comments come amid international media reports suggesting that some global banks were adjusting operations in Dubai as they monitor developments in the region.

Abu Manneh stressed that the UAE remains a key hub for Standard Chartered’s global network.

“The UAE is a key hub for our international network, connecting markets across the Middle East, Asia and Africa, and we are proud to support the country’s dynamic business community,” she said.

Dubai hosts regional headquarters for many global financial institutions, particularly within the Dubai International Financial Centre (DIFC), and has become a major base for international banks operating across the Middle East.

According to reports cited by Reuters, some financial institutions have asked staff in Dubai to work remotely while monitoring regional developments. Citigroup has reportedly instructed employees in its Dubai offices to work from home until further notice, while staff at Goldman Sachs across the region are also working remotely.

Despite these precautionary measures, Abu Manneh thanked colleagues and clients for their continued support.

“I would like to thank our colleagues for their professionalism during this period, and our clients and partners for their continued trust,” she said.

Dubai Civil Defence teams have brought a minor fire under control on a building in the Dubai Creek Harbour area, authorities confirmed.

Emergency crews responded quickly to the incident, and no injuries were reported, according to a statement from the Dubai Media Office.

Authorities secured the site and ensured residents were safe after a drone fell in the area.

The incident follows another drone-related episode near Dubai International Airport (DXB) on Wednesday.

Authorities confirmed that two drones fell in the vicinity of DXB, leaving four people injured, though air traffic at one of the world’s busiest aviation hubs continued without disruption.

Read more: Drone incident reported near DXB: Airport operations remain normal

According to the Dubai Media Office, two Ghanaian nationals and one Bangladeshi national sustained minor injuries, while an Indian national was moderately injured.

Officials said the drones fell near the airport following aerial interceptions during the ongoing regional conflict.

UAE air defence systems have been actively intercepting incoming missiles and drones launched toward the country in recent days.

In its latest update on Wednesday night, the UAE Ministry of Defence said air defence units engaged 6 ballistic missiles, 7 cruise missiles and 39 drones in the most recent wave of attacks.

Since the start of the escalation, UAE air defences have engaged a total of 268 ballistic missiles, 15 cruise missiles and 1,514 drones, according to official figures.

Authorities continue to urge residents to follow official channels for updates and to avoid approaching any debris from intercepted missiles or drones.

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SoftBank Group-backed PayPay on Wednesday priced its US initial public offering (IPO) at $16 per share, below its targeted price range, as the US-Israeli crisis with Iran weighed on market sentiment.

The IPO raised about $880m based on 55 million American depositary receipts sold, valuing the Japanese digital wallet provider at $10.7bn.

PayPay confirmed the pricing in a statement on its website after Reuters reported the details earlier on Wednesday.

PayPay was likely to price the IPO around the low end of the range, Reuters reported on Tuesday. It originally wanted to sell the shares at a target range of $17 to $20 apiece.

The IPO comes as the US-Israeli-Iran crisis rattles global markets. The company delayed the launch of the roadshow this week before resuming it a day later as it reassessed market conditions, Reuters reported.

The US IPO market is set to rebound sharply this year after a bout of volatility. Goldman Sachs has forecast proceeds could quadruple to a record $160bn in 2026, driven by a pipeline of large private companies, including SpaceX, OpenAI and Anthropic, preparing for potential debuts.

PayPay would mark the first US listing of a SoftBank majority investment since the blockbuster IPO of Arm Holdings in 2023.

SoftBank took the chip designer public at a $54.5bn valuation. Its market capitalisation has since risen to more than $127bn.

PayPay is one of Japan’s most widely used digital wallets

Founded in 2018 as a joint venture between SoftBank and Yahoo Japan, PayPay entered the market by waiving transaction fees for small and medium-sized merchants for up to three years to spur adoption.

The company has since become one of Japan’s most widely used digital wallets, with about 72 million registered users at the end of 2025.

Visa, the Abu Dhabi Investment Authority and a subsidiary of the Qatar Investment Authority are anchoring the IPO by purchasing up to $220m of PayPay’s shares upon debut.

PayPay has also played a role in Japan’s push toward cashless payments, offering rebates and other incentives to encourage consumers to use its mobile app.

The company plans to list on the Nasdaq under the symbol “PAYP.”

Goldman Sachs, J.P. Morgan, Mizuho and Morgan Stanley ​are joint book-running managers for the offering.

Read: India aims to raise $20bn from IPOs of state-run firms by 2030