Asian Airlines Likely to Face Minimal Impact From Israel-Iran Tensions -- Market Talk

Dow Jones06-26

0550 GMT - Asian airlines continue to face some risks from the Israel-Iran conflict but the impact will likely be minimal, Morningstar director Lorraine Tan says in a note. The disruptions to Europe-Asia routes for Singapore Airlines, which relies on Iranian airspace to connect both regions, meant the rerouting of flights, adding to travel time and increasing fuel consumption while pressuring margins, Tan says. All countries in the Middle East except Iran have reopened their airspaces, but travelers from Southeast Asia, South Asia and Australasia would likely seek to avoid transiting in Abu Dhabi, Dubai and Doha, Tan notes. This could help drive international flight demand toward SIA and Cathay Pacific, but demand will likely normalize as risks ease, Tan adds. (kimberley.kao@wsj.com)

 

(END) Dow Jones Newswires

June 26, 2025 01:50 ET (05:50 GMT)

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