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Gulf Airline Hub Resilience Questioned After Iran Attacks

Financial Times Companies •
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The Gulf's status as a global aviation hub faces unprecedented strain following attacks on Iran, disrupting operations at Dubai, Abu Dhabi, and Doha airports. Emirates president Tim Clark asserted the region's resilience, citing decades of handling geopolitical tensions, but acknowledged the current crisis demands constant readiness. Dubai airport, processing 95 million passengers last year, remains closed alongside Abu Dhabi and Doha, stranding an estimated 4 million passengers and crippling the business model of Gulf carriers. Etihad and Qatar Airways rely on transit passengers for roughly 80% of their traffic, making them particularly vulnerable to cancellations. Emirates has a lower, but still significant, 50% transit share. Gulf airlines possess financial firepower to offer cheap tickets, but rivals like Turkish Airlines and European carriers are seizing the opportunity to add direct flights to Asia, bypassing the Gulf. Istanbul airport has seen increased demand from stranded passengers.

While passengers historically return after shocks, the long-term impact on the Gulf's transit dominance remains uncertain.