Airlines in Asia see higher demand as travellers reroute from Gulf hubs

SINGAPORE: While the surge in the price of jet fuel has caused air ticket prices to soar, Asian airlines are reporting an increased demand as flyers are now choosing to transit through Asia rather than countries in the Middle East.

The increase in jet fuel prices has resulted from the war in the Middle East, which began on Feb 28 when the United States and Israel started to bomb Iran. Iran has all but closed the Strait of Hormuz, a key chokepoint through which around 20% of the world’s energy supply passes, leaving many countries scrambling for fuel.

Wary of getting close to conflict areas, of cancelled or affected flights, many travellers are looking to routes considered to be safer. Singapore Airlines, Cathay Pacific, Korean Air, and even Qantas Airways have reported strong ticket sales in March.

Reuters quoted Cathay Chief Customer and Commercial Officer Lavinia Lau as saying on April 17, “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.”

Singapore Airlines saw the sharpest gain among all regions last month in terms of the percentage of seats filled. For its flights to Europe, SIA had 93.5% seats filled, an increase from 79.7% at the same time last year, saying in a statement that “capacity through Middle East air hubs was affected by the ongoing Middle East conflict.”

Both Cathay Pacific and Singapore Airlines have announced that it added flights to Europe amid the uptick in demand.

Korean Air, meanwhile, saw its operating income increase by 47.3% to 517 billion won (approximately S$446.6 million), due to “increased demand between Europe and Asia due to the Middle East war.” The airlines’ European passenger revenue is now up by nearly one-fifth from March 2025.

Whether travel demand across Asia will be strong will be tested in May and July, during the summer school holidays for India and China, respectively, reported the South China Morning Post. It quoted an industry expert as saying, “Both will be watched closely as barometers of the strength, or otherwise, of regional travel.”

Transit hubs in the Gulf

Transit hubs in the Gulf, such as Dubai International Airport, Hamad International Airport in Doha, and Zayed International Airport in Abu Dhabi, have all been affected by the conflict, which quickly spread to various countries in the region.

However, Emirates, Qatar Airways, and Etihad Airways have been restoring capacity in the past weeks, and are now at 60% of pre-February 28 flights. /TISG

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