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Gulf Airlines Face War Crisis as Airspace Shutdowns Loom

Bloomberg Markets •
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Airlines in the Middle East are confronting an unprecedented crisis as war disrupts operations across the Persian Gulf. Jazeera Airways CEO Barathan Pasupathi described the situation as 'living the worst-case scenario' after the US and Israel attacked Iran, forcing immediate grounding of flights and evacuation of crews and passengers.

Pasupathi, who was in Munich when airspace closures were announced, said the airline had prepared contingency plans for exactly this scenario. The low-cost carrier mobilized to safely return 200 Iranian customers through Iraq while working diplomatic channels. Jazeera's challenges mirror those of larger carriers like Emirates, which suspended commercial services for a full week.

With 10% of global traffic flowing through Gulf hubs, the economic impact extends far beyond airlines. Pasupathi warned that the Middle East's tourism and hospitality infrastructure, built as part of efforts to diversify from oil, faces severe disruption. The region's airports have come under direct attack, with Kuwait International Airport hit by a drone causing injuries and damage. While Jazeera's terminal remains functional and could resume operations within six hours of airspace reopening, the broader industry faces lasting repercussions from these unprecedented shutdowns.