Asian airlines add Europe routes as travelers avoid Middle East hubs, boosting traffic.
JAKARTA – Several Asian airlines have recorded a surge in demand on European routes as passenger flows shift away from Middle Eastern hubs disrupted by the Iran conflict.
As reported by Reuters, Cathay Pacific Airways, Singapore Airlines, Korean Air Lines, and Qantas Airways reported strong performance on European routes throughout March, despite rising jet fuel prices. Airlines have added capacity to capture the increase in demand, particularly from passengers avoiding transit through the Gulf region.
“We have added flights and capacity to Europe in March and April to meet the surge in market demand as passengers prioritise alternative routes,” said Cathay’s Chief Customer and Commercial Officer, Lavinia Lau.
Singapore Airlines recorded a load factor on European routes of 93.5% in March, up from 79.7% a year earlier. The increase was driven by spillover passengers due to reduced flight capacity through Middle Eastern hubs.
Before the conflict, Emirates, Qatar Airways, and Etihad Airways accounted for around one-third of Asia–Europe passenger traffic and more than half of Europe–Australia and Pacific routes, according to Cirium data. They are now gradually restoring capacity to around 60% of pre-conflict levels, but still face obstacles, including travel advisories from Australia affecting passenger insurance coverage.
Route changes have also affected ticket prices. Data from Google Travel shows that flights avoiding the Middle East are more expensive than those transiting through the Gulf.
Analysts at Bank of America estimate that stronger pricing and market share gains on Asia–Europe routes could persist for 6 to 12 months after the conflict. “Tighter pricing and increased market share on Asia–Europe routes may continue for 6–12 months even after the war ends, given booking delays and travellers’ reluctance to take risks.”
Korean Air reported a 47.3% rise in first-quarter operating profit to 517 billion won, with passenger revenue on European routes increasing 18% year-on-year. The airline said the surge was driven by increased demand due to the Middle East conflict and expects transit trends to remain strong.
Qantas has also shifted capacity from domestic and United States routes to Europe, including adding flights to Paris and Rome. “Qantas continues to see strong demand for international travel to Europe as customers seek alternative routes,” the airline said.
Data from Airservices Australia shows Australia–Middle East traffic fell 77% year-on-year in March. Traffic has been redirected to alternative cities in Asia such as Singapore, Kuala Lumpur, Hong Kong, Tokyo, and Seoul, which are now absorbing the demand and have the potential to develop as new hubs. (DH/LM)
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