Middle Eastern airlines face massive potential losses

Significance

The COVID-19 outbreak is the latest blow to civil aviation in the Middle East, where airlines already face unprecedented security risks and operational complexities. Carriers routinely have to make difficult decisions around the conflict in Syria, US-Iran tensions and the Qatar boycott, leading to re-routed flights, lost profits and delays.

Impacts

• COVID-19 has the potential to transform the entire aviation industry.
• Despite ongoing security threats, overflight of Iraq and Iran will be critical for carriers operating between Europe and the Gulf or Asia.
• Security improvements will make Egypt a more important alternate route for overflight, but operators will incur more cost by using it.