Airline shares stabilise as repatriation flights leave Gulf

Global airline shares showed signs of stabilising on Wednesday as limited repatriation flights began departing the Middle East, even as the U.S.-Israel air war with Iran intensified.

Governments are working to bring tens of thousands of stranded citizens home after widespread airspace closures across the region. Major hubs, including Dubai — the world’s busiest international airport — have remained shut for five consecutive days, marking the most severe disruption to global travel since the COVID-19 pandemic, News.Az reports, citing Reuters.

The first repatriation flights were scheduled to depart for Britain and France, while the United Arab Emirates opened special corridors to allow some citizens to return. However, skies over Iran and Iraq remain largely empty.

Airline stocks, which had suffered double-digit percentage losses earlier this week, began to steady. Lufthansa fell 0.8% on Wednesday, Qantas dropped 2.7%, and British Airways owner IAG declined 1.5%, though all have lost more than 10% of their market value in recent days. In Asia, Japan Airlines fell 2.9%, while major Chinese carriers Air China and China Southern Airlines closed down between 1% and 3%.

The Gulf region is a critical hub for both passenger travel and air cargo, adding pressure to global trade routes. Airline executives warn that crew members are scattered worldwide, complicating the restart of normal operations.

Rising oil prices are also expected to push up airline operating costs. Analysts say prolonged airspace closures could make Asia-Europe routes significantly more expensive due to rerouting, while reduced travel options may dampen tourism spending from the Middle East.

As markets adjust to the risk of a longer conflict and sustained high energy prices, volatility across the global aviation sector is likely to continue.

News.Az 

By Aysel Mammadzada