Gulf carriers squeezed by Iran tensions

Diplomatic tensions are causing airlines in Saudi Arabia, Iran and Bahrain to lose millions of dollars in revenue at a time when all three countries are grappling with the economic impact of lower oil prices. Flights that carry pilgrims to Islam's holiest sites in Saudi Arabia are among the routes halted by a diplomatic spat between Iran and the two Gulf states. The significant loss of revenue is pressuring airlines that are already looking for alternative sources to fund fleet expansions as their govts face holes in finances hit by the oil slump. As airlines contend with higher costs from flying longer routes to avoid regional war zones, the additional squeeze on revenue could push them to tap debt markets or seek foreign investment. <br/>