Insurance Woes Amid US-Iran War Stall Airlines’ Return to Dubai

Challenges in securing insurance as hostilities between the US and Iran escalate are slowing the return of some foreign airlines to Dubai, the chief executive of the entity that owns and manages its airports said.

International carriers’ operations to Dubai are growing but some key European airlines still aren’t making the trip because of government travel advisories for the region, according to Dubai Airports Chief Executive Officer Paul Griffiths. “They are having difficulty getting insurance for operations,” he added.

Griffiths comments come amid renewed strikes between the US and Iran. Despite the recent flare-up, operations at Dubai International Airport, one of the world’s busiest airports, are “completely normal,” he said. “We’re operating at pretty much full capacity.”

The hub delayed its passenger target earlier this year as the war curbed travel demand to the Middle East and airspace closures forced airlines to reroute.

The region’s aviation industry has been among those most affected by the conflict, with infrastructure at some hubs damaged in airstrikes and by interception debris.

Emirates, Qatar Airways and Etihad Airways cut back operations, reworking their international networks to adjust to wartime demand. Emirates, which flew near-empty planes to its hub in Dubai at some points as travelers sought to avoid the Persian Gulf, recently started providing war travel insurance to passengers.

Most European airlines have suspended services to large parts of the region, including Bahrain and Israel. Carriers have also taken a more cautious approach to flight paths to avoid possible conflict zones, further narrowing their corridors as they traverse the region en route to Asia.

Photograph: Passenger aircraft, including an Airbus A380, left, at Dubai International Airport in Dubai, United Arab Emirates, on Wednesday, Nov. 27, 2024; photo credit: Christophe Viseux/Bloomberg

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