The world’s aviation industry has plunged into its most severe crisis since the Covid-19 pandemic.
As the conflict between the US, Israel and Iran enters its fourth week, the 20 largest publicly listed airlines have collectively lost an estimated $53 billion in market value.
Since military operations began on February 28, 2026, major flight paths have been redrawn to avoid risky airspace. This has caused massive disruptions at critical Gulf hubs like Dubai and Doha.
The financial impact is staggering; according to the Financial Times, the industry is “in the grip of its worst crisis since the Covid-19 pandemic” as grounded flights and rerouted journeys drain corporate coffers.
The crisis is being fueled by a dramatic spike in energy prices.
Jet fuel which typically represents “a third of airlines’ costs” has doubled in price over the 24 days. Executives are now “sounding the alarm of possible fuel shortages” while warning that travelers will soon feel the pinch.
With profit margins thinning, the report suggests a sharp “increase in airline tickets” is almost certain as carriers struggle to stay airborne in a volatile economy.
