GCC airfares poised to drop by July as peace reopens regional airspace

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Travel Daily Media interviews Alena Iakina, founder of visarun.ai

Alena Iakina,

As the summer travel season gathers pace, travellers across the Gulf are facing higher airfares, changing flight routes, and growing uncertainty driven by regional geopolitical tensions. Airlines are balancing rising fuel and operational costs with strong seasonal demand, while passengers are becoming increasingly focused on flexibility, reliability, and value for money. Against this backdrop, Travel Daily Media interviews Alena Iakina, founder of visarun.ai to explore the forces shaping the GCC aviation market. From the impact of airspace disruptions and soaring ticket prices to the rise of alternative transit hubs and evolving business travel habits, Iakina offers practical insights into how travellers and the wider industry are adapting to a rapidly changing landscape.

 Travel Daily Media (TDM): Airfares across the GCC have surged ahead of the summer travel season. What are the biggest factors driving the increase, and how long do you expect elevated pricing to persist?

Alena Iakina (AL): Airfares are rising primarily due to higher costs driven by regional conflicts and the usual summer demand. When Iran closed the Strait of Hormuz, oil prices rose above $100 per barrel, and jet fuel reached about $3.99 per gallon. Airlines have had to reroute flights to avoid Iranian airspace, which can add up to three hours to trips between Europe and Asia.

If the Strait reopens, ticket prices could start to drop by July. If not, high fuel costs and pricing pressures may last through the summer and possibly into 2027. Higher fares will probably continue at least through the third quarter.

TDM: With regional airspace reopening following the Iran-related disruptions, how has traveller behaviour changed, and what impact has this had on airline demand, capacity, and ticket prices?

AL: Regional airspace has not reopened smoothly. The UAE briefly closed its airspace after Iranian strikes in early May, and Kuwait shut its airspace for two hours on June 6. Because of this, travellers are avoiding Gulf connections and do not feel reassured. Many are skipping stopovers in Dubai and Doha, which has increased demand for long-haul direct flights.

Kuwait Airways, Emirates, Qatar Airways, and Etihad are working to bring back GCC connections. But European regulators still advise extra risk checks for Gulf routes. This means higher insurance costs and less flexible schedules for non-Gulf airlines, even though local carriers are recovering more quickly.

TDM: Many travellers are now choosing indirect routings through hubs such as Istanbul, Doha, and Abu Dhabi. How significant is this trend, and what does it reveal about changing consumer priorities in the GCC?

AL: Istanbul has become a popular hub mostly because it is outside the conflict zone, not because Gulf hubs are less attractive. Istanbul Airport has stayed open without airspace restrictions. Turkish Airlines has slowly restarted its Gulf routes. Dubai, Doha, and Abu Dhabi did not return to schedules until later in the summer.

During this time, travellers stayed away from hubs like Doha and Abu Dhabi, especially after Qatar Airways stopped regular flights. People who usually connected through Doha sought alternative routes.

GCC travellers are now more focused on predictability and avoiding conflict zones, even if it means paying more or giving up convenience.

TDM: Airlines continue to face higher fuel, operational, and staffing costs. To what extent are these expenses being passed on to passengers, and what does this mean for travel affordability in 2026?

AL: Airlines outside the US, like Cathay Pacific, Air France-KLM, Air India, Hong Kong Airlines, and FlySafair, now add fuel surcharges directly to ticket prices. Most US airlines instead include these costs in the base fare.

Travellers will likely continue to see higher prices because these are long-term issues, not just temporary surcharges that end when the conflict does. Rerouting and insurance costs will persist even after the fighting stops.

TDM: Early booking can deliver savings of 30-40%. How far in advance should leisure and business travellers be planning their trips this summer, and are there any routes where bargains can still be found?

AL: This summer, booking your trip 8 to 10 weeks in advance can help you manage risks given limited flight options. For better deals, look at shorter regional routes within the GCC, especially on Gulf airlines that are rebuilding their schedules.

Routes such as Bahrain-Saudi-Oman and Kuwait’s resumed flights are good choices because they avoid the extra fuel costs that affect long-haul fares.

TDM: Business travel patterns in the Gulf appear to be evolving, with shorter trips and greater flexibility becoming the norm. What are the key trends you're observing, and how are companies adapting their travel strategies in response to rising costs?

AL: We see this trend clearly in our data. More travellers are adding leisure time to short business trips, both worldwide and in the GCC. Companies still book economy flights but are spending more on better hotels, reliable internet, and places close to business areas. Travellers are also staying longer to enjoy local cultural events.

Because of this, more people want multi-entry and flexible visas, and there are more last-minute changes to travel plans. Now, people expect flights, hotels, and visas to adjust together in real time, instead of travellers having to manage each part separately.

 

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GCC airfares poised to drop by July as peace reopens regional airspace

Travel Daily Media interviews Alena Iakina, founder of visarun.ai

Alena Iakina,

As the summer travel season gathers pace, travellers across the Gulf are facing higher airfares, changing flight routes, and growing uncertainty driven by regional geopolitical tensions. Airlines are balancing rising fuel and operational costs with strong seasonal demand, while passengers are becoming increasingly focused on flexibility, reliability, and value for money. Against this backdrop, Travel Daily Media interviews Alena Iakina, founder of visarun.ai to explore the forces shaping the GCC aviation market. From the impact of airspace disruptions and soaring ticket prices to the rise of alternative transit hubs and evolving business travel habits, Iakina offers practical insights into how travellers and the wider industry are adapting to a rapidly changing landscape.

 Travel Daily Media (TDM): Airfares across the GCC have surged ahead of the summer travel season. What are the biggest factors driving the increase, and how long do you expect elevated pricing to persist?

Alena Iakina (AL): Airfares are rising primarily due to higher costs driven by regional conflicts and the usual summer demand. When Iran closed the Strait of Hormuz, oil prices rose above $100 per barrel, and jet fuel reached about $3.99 per gallon. Airlines have had to reroute flights to avoid Iranian airspace, which can add up to three hours to trips between Europe and Asia.

If the Strait reopens, ticket prices could start to drop by July. If not, high fuel costs and pricing pressures may last through the summer and possibly into 2027. Higher fares will probably continue at least through the third quarter.

TDM: With regional airspace reopening following the Iran-related disruptions, how has traveller behaviour changed, and what impact has this had on airline demand, capacity, and ticket prices?

AL: Regional airspace has not reopened smoothly. The UAE briefly closed its airspace after Iranian strikes in early May, and Kuwait shut its airspace for two hours on June 6. Because of this, travellers are avoiding Gulf connections and do not feel reassured. Many are skipping stopovers in Dubai and Doha, which has increased demand for long-haul direct flights.

Kuwait Airways, Emirates, Qatar Airways, and Etihad are working to bring back GCC connections. But European regulators still advise extra risk checks for Gulf routes. This means higher insurance costs and less flexible schedules for non-Gulf airlines, even though local carriers are recovering more quickly.

TDM: Many travellers are now choosing indirect routings through hubs such as Istanbul, Doha, and Abu Dhabi. How significant is this trend, and what does it reveal about changing consumer priorities in the GCC?

AL: Istanbul has become a popular hub mostly because it is outside the conflict zone, not because Gulf hubs are less attractive. Istanbul Airport has stayed open without airspace restrictions. Turkish Airlines has slowly restarted its Gulf routes. Dubai, Doha, and Abu Dhabi did not return to schedules until later in the summer.

During this time, travellers stayed away from hubs like Doha and Abu Dhabi, especially after Qatar Airways stopped regular flights. People who usually connected through Doha sought alternative routes.

GCC travellers are now more focused on predictability and avoiding conflict zones, even if it means paying more or giving up convenience.

TDM: Airlines continue to face higher fuel, operational, and staffing costs. To what extent are these expenses being passed on to passengers, and what does this mean for travel affordability in 2026?

AL: Airlines outside the US, like Cathay Pacific, Air France-KLM, Air India, Hong Kong Airlines, and FlySafair, now add fuel surcharges directly to ticket prices. Most US airlines instead include these costs in the base fare.

Travellers will likely continue to see higher prices because these are long-term issues, not just temporary surcharges that end when the conflict does. Rerouting and insurance costs will persist even after the fighting stops.

TDM: Early booking can deliver savings of 30-40%. How far in advance should leisure and business travellers be planning their trips this summer, and are there any routes where bargains can still be found?

AL: This summer, booking your trip 8 to 10 weeks in advance can help you manage risks given limited flight options. For better deals, look at shorter regional routes within the GCC, especially on Gulf airlines that are rebuilding their schedules.

Routes such as Bahrain-Saudi-Oman and Kuwait’s resumed flights are good choices because they avoid the extra fuel costs that affect long-haul fares.

TDM: Business travel patterns in the Gulf appear to be evolving, with shorter trips and greater flexibility becoming the norm. What are the key trends you're observing, and how are companies adapting their travel strategies in response to rising costs?

AL: We see this trend clearly in our data. More travellers are adding leisure time to short business trips, both worldwide and in the GCC. Companies still book economy flights but are spending more on better hotels, reliable internet, and places close to business areas. Travellers are also staying longer to enjoy local cultural events.

Because of this, more people want multi-entry and flexible visas, and there are more last-minute changes to travel plans. Now, people expect flights, hotels, and visas to adjust together in real time, instead of travellers having to manage each part separately.

 

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