The rebound followed sharp losses after joint strikes by the United States and Israel on Iran triggered widespread airspace closures across the region. The developments wiped billions of dollars from airline market valuations and forced carriers to suspend or reroute hundreds of flights amid concerns that missiles or military activity could endanger civilian aircraft.
Gradual Resumption of Flights
Some airlines have begun cautiously restoring limited services through designated safe air corridors. Carriers such as Emirates and Etihad Airways resumed a small number of operations from Dubai and Abu Dhabi in the United Arab Emirates.
Flight-tracking data indicated that several Emirates aircraft departed Dubai on Thursday morning for destinations including Sydney, Paris, Amsterdam, Toronto and Mumbai. However, most scheduled services across the region remained cancelled as airlines continued to assess safety conditions.
The disruptions have been particularly severe at Dubai International Airport, the world’s busiest international hub, which typically handles more than 1,000 flights each day. Its temporary shutdown sent global travel schedules into disarray and drove ticket prices sharply higher on long-haul routes such as Australia to Europe.
Meanwhile, Qatar Airways announced plans to operate limited relief flights starting Thursday for stranded passengers. The airline said flights would depart from Muscat in Oman to several European cities including London, Berlin and Rome, as well as from Riyadh to Frankfurt.
These flights mark the carrier’s first operations since Saturday, when its hub in Doha was closed following the strikes on Iran.
Governments Organize Evacuations
With thousands of travelers stranded, governments have moved quickly to arrange evacuation flights. The government of the United States said a charter flight was transporting American citizens back home from the Middle East, with additional departures being organized from several locations in the region.
According to the United States Department of State, more than 17,500 Americans have returned to the country from the Middle East since February 28.
Authorities in Canada are also working to repatriate citizens by securing seats on commercial flights and contracting charter aircraft.
Some stranded tourists and expatriates have attempted to leave the region independently by traveling overland to countries where airspace remains open, including Saudi Arabia and Oman.
Rising Costs and Supply Chain Impact
Beyond passenger travel, the conflict has also disrupted global cargo flows. Airspace restrictions have reduced worldwide air freight capacity by more than 20%, forcing airlines to reroute flights and increasing delivery times for shipments.
At the same time, jet fuel prices have surged. Benchmark fuel rates in Singapore reached record highs amid fears that escalating tensions could disrupt oil supplies.
Airlines operating long-haul routes have been forced to adjust flight paths to avoid closed airspace, often carrying extra fuel or making additional refueling stops to accommodate longer detours.
Asian Airline Stocks Recover Slightly
Despite these pressures, airline stocks across Asia recovered modestly after steep declines earlier in the week.
Shares of Cathay Pacific Airways rose about 4% in Hong Kong, while Japan Airlines edged up slightly. Australia’s Qantas Airways closed roughly 1% higher, and Korean Air surged more than 6%.
Major Chinese carriers—including Air China, China Eastern Airlines and China Southern Airlines—recorded smaller declines of between 1% and 3% after suffering heavier losses earlier in the week.
Market analysts cautioned that the rebound may be temporary. Kenny Ng, a strategist at China Everbright Securities International, said investor sentiment remains closely tied to developments in the Iran conflict.
Another economist, Gary Ng of Natixis, noted that Asian airlines are particularly sensitive to tensions involving Iran because of their heavy reliance on routes that pass through Middle Eastern airspace and their exposure to fuel price volatility.
Diplomatic Signals Offer Glimmer of Hope
There were tentative signs that diplomatic channels might reopen. Officials from Iran’s intelligence services reportedly signaled a willingness to explore talks with the Central Intelligence Agency, raising hopes that negotiations could eventually reduce hostilities.
For the aviation industry, the duration of the conflict—and the stability of regional airspace—will remain critical factors determining whether the current rebound in airline stocks can be sustained.