Air travel patterns between Asia and Europe are undergoing a crucial shift, with major Asian carriers experiencing a spike in demand as passengers increasingly avoid Middle Eastern transit hubs amid the US-Iran conflict. The disruption linked to the ongoing Iran conflict has pushed travellers to seek alternate routes, a trend that industry experts believe could continue even after tensions ease. Airlines such as Cathay Pacific Airways, Singapore Airlines, Korean Air Lines, and Qantas Airways have all reported strong performance on European routes in March.
This comes despite rising operational costs, particularly a sharp increase in jet fuel prices, which have doubled in recent months.
"We have ... mounted additional flights and capacity to Europe in March and April to cater for an upsurge in market demand as passengers prioritised alternative routings," Cathay Chief Customer and Commercial Officer Lavinia Lau said on Friday, according to a Reuters report.
Carriers have responded swiftly by increasing flight frequencies and reallocating capacity to meet the growing demand. Singapore Airlines reported that its Europe-bound flights operated at 93.5 per cent seat occupancy in March, a sharp rise from 79.7 per cent a year earlier. The surge was partly driven by travellers rerouting due to reduced capacity through Middle Eastern hubs.
The airline highlighted that Europe routes recorded the strongest growth among all regions. Increased travel during the Easter period, combined with a rise in long-haul bookings viaAsiantransit points, has further supported this upward trend.
Gulf Carriers Face Ongoing Challenges
Before the conflict, major Gulf airlines, including Emirates, Qatar Airways, and Etihad Airways, dominated Asia-Europe traffic. According to aviation analytics firm Cirium, these carriers accounted for roughly one-third of passenger traffic on the route and more than half of travellers heading to destinations like Australia and New Zealand, added the report.
Although operations are gradually recovering, capacity remains constrained. Additional complications, such as travel advisories warning against transit through Gulf hubs, have further dampened demand. As a result, passengers opting to bypass the region are paying significantly higher fares, according to data from Google Travel.
As per the report, Bank of America analysts said in a recent ‌note that "tight pricing and share gains on Asia-Europe routes could persist for 6-12 months even after the end of the war, given forward booking lags and traveller risk aversion."
Asian Hubs Emerge As Key Alternatives
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