Iran Conflict Sparks Global Airline Crisis as Jet Fuel Prices Soar and Route Cancellations Mount

UK, US, Turkish, and Middle East carriers face rising costs, airspace restrictions, and network disruption.​​​​​​​

Airlines across the UK, the United States, Turkey and the wider Middle East are rethinking routes, fares and expansion plans as the ongoing conflict involving Iran continues to disrupt airspace and drive jet fuel prices sharply higher. The strain is being felt industry-wide, from major legacy carriers to budget airlines, with real consequences for anyone flying to, from or through the region this year.​​​​​​​

The scale of the cost pressure is significant. The International Air Transport Association has warned that Middle East disruption combined with high fuel prices has meaningfully weakened the financial outlook for airlines worldwide. Global airline fuel costs are forecast to climb from around $252 billion in 2025 to $350 billion in 2026, with jet fuel expected to make up 31.4% of airline operating expenses this year, up from 25.4% last year.​​​​​​​

British travellers are already seeing the practical effects. British Airways has delayed the resumption of flights to Doha until 1 August and to Riyadh until 8 August, while services to Dubai, Tel Aviv, Bahrain and Amman remain paused until 25 October. Even once these routes return, passengers should expect fewer daily flights than before the disruption began. Parent company IAG has pointed to rising fuel costs and supply disruption as a growing strain on its finances, and smaller, lower-cost carriers with less financial cushion — including easyJet, Wizz Air, airBaltic and Norse Atlantic — are being watched closely by industry analysts amid concerns over restructuring and potential consolidation.

Turkey's position linking Europe, Asia, and the Middle East gives its aviation sector strong connecting traffic, but also leaves it exposed to regional disruption. Turkish Airlines chose not to pay a dividend from its 2025 profits, opting instead to preserve cash during this uncertain period. Its joint venture with Lufthansa, SunExpress, introduced a temporary €10 fuel surcharge on flights between Turkey and mainland Europe. Even so, Turkish Airlines is continuing to pursue growth, and SunExpress resumed its Antalya to Dubai route in mid-July, a sign that airlines are cautiously restoring services where conditions allow.

Major hubs such as Dubai, Doha and Abu Dhabi rely heavily on passengers connecting between Europe, Asia, Africa and Australia, meaning disruption affects far more than flights starting or ending there. Airspace over Bahrain, Kuwait, Qatar, the UAE, and the Gulf of Oman remains subject to advisories, while separate warnings covering Iran, Iraq, and Lebanon are expected to run into late summer. Several international carriers, including Air Canada, Cathay Pacific and Lufthansa Group airlines, have extended suspensions on Gulf routes into October.​​​​​​​

With schedules shifting on short notice, passengers travelling to or via the Gulf, Turkey or Israel should check the latest airline advisories before departure and allow extra time for connections through affected hubs.

Crystal Travel's expert travel agents continue to track these developments closely, helping customers stay informed and travel with confidence during this unsettled period.