The Middle East has long been a global crossroads for air travel, with hundreds of aircraft bisecting the region every day on long-distance journeys connecting the US, Europe and Asia. Plying those routes has become more challenging, with rising tensions forcing airlines to curtail services as a safety precaution. The war between Israel and Hamas, in a region already studded with hot zones, has added to the complications of flying between east and west. That’s after Russia’s invasion of Ukraine already added hours to many journeys by shutting down vast airspace to many transnational operators — including the Great Circle routes through Siberia, a popular gateway between the continents. Israel’s El Al has stopped flying over much of the Arabian peninsula, citing safety concerns, swinging wide at a cost of several hours on flights to Bangkok. The carrier also postponed services to India, while canceling seasonal routes to Tokyo. Most other airlines stopped flying to Tel Aviv after the outbreak of hostilities. Deutsche Lufthansa AG also quit Beirut for now, while Air France-KLM said it has seen a slight reduction in passenger demand for trips to the region. The wars also create potential issues for people traveling on carriers that still fly over contentious areas. Globally, demand for international travel has fallen by 5 percentage points since the Oct. 7 Hamas attacks, according to ForwardKeys, a travel analytics firm. Local conflicts in the Middle East have long made Yemen, Syria and Sudan no-fly zones for most airlines. US and UK operators avoid Iranian airspace, pushing long-distance traffic toward the west, over Iraq. While the recent outbreak hasn’t caused major delays to date on overflights through the region, the Iran and Iraq pathways each face further strains. Attacks on US and coalition forces have increased in Iraq and Syria, while Iran has warned that new fronts could open as Israel moves ahead with its ground invasion of the Gaza Strip.<br/>
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Airlines have a record 260m seats to fill this quarter, and to do it, they’re offering fares that will run you about the same as a pair of movie tickets. Southwest Airlines, for example, last month offered one-way fares of $29 for flights early in the morning or at night, just one example of airline discounting for off-peak periods. “I would characterize the amount of discounting or sales that we’re doing today as a bit more than normal,” Ryan Green, Southwest’s CCO, told reporters at the Skift Aviation Forum earlier this month. He said the industry’s increased capacity in recent months means there are more seats to fill, even though the carrier’s average fare was up in the last quarter from a year ago. Leisure travelers, meanwhile, have largely returned to more traditional booking patterns after years of pandemic swings in demand, leaving airlines looking for ways to fill planes outside of holidays or other popular travel periods. “Typically, you see a step increase in price at each seven-day mark before a flight,” said Scott Keyes, founder of Scott’s Cheap Flights, a flight-deal company that recently rebranded as Going. But airlines are either dropping last-minute fares or not raising them as much as usual, he said. Airlines have scheduled a record 259.8m seats for domestic flights in Q4, up nearly 8% from last year, on 1.86m flights, up 6% from 2022, according to aviation-data firm Cirium. Getting the balance right in the off-season is a challenge for airlines, which make the majority of their revenue in the second and third quarters during the busy spring and summer seasons. Most major carriers reported record revenue and strong demand during those periods, with some executives reporting higher growth for international destinations over domestic ones.<br/>
A plane flying from London to Orlando, Fla., last month was forced to turn around because some windowpanes were missing or damaged, startling passengers who had reported hearing roaring sounds inside the cabin, the authorities said. The plane, an Airbus A321, had four damaged windowpanes, including two that were completely missing, as it took off from London Stansted Airport on Oct. 4, according to a report published last week by the British Air Accidents Investigation Branch. There were no injuries aboard the flight, which had 11 crew members and nine passengers who sat in the middle of the aircraft and who were all employees of a “tour company or the aircraft’s operating company,” the authorities said. The names of the companies were not listed in the report. After takeoff, some passengers remarked that “the aircraft cabin seemed noisier and colder than they were used to,” according to the report. Someone who walked toward the back of the plane noticed a loud noise and saw that a window seal was flapping and that the windowpane appeared to have slipped down. That passenger described the cabin noise to an investigator as “loud enough to damage your hearing,” the report states. Cabin crew members were informed, and after further inspection of the window, they agreed to return the aircraft to Stansted. The plane remained normally pressurized throughout the 36-minute flight, investigators said. Once the plane landed, crew members found the three other damaged window panes. The report said that a day before the flight, the aircraft had been used for filming on the ground and that external lights had been shined onto it for more than five hours “to give the illusion of a sunrise,” the authorities said. But the hot lights caused thermal damage and distortion to the windows, the authorities said. The report warned that while the episode had ended “uneventfully,” a more severe level of damage “might have resulted in more serious consequences, especially if window integrity was lost at higher differential pressure.”<br/>
A $242m overhaul will modernize the main terminal concourses and gate areas at Minneapolis-St. Paul International Airport, officials said. The project announced Thursday by the Metropolitan Airports Commission an Delta Airlines, the airport’s dominant carrier, is expected to be completed by late 2025, the Minneapolis Star Tribune reported. Metropolitan Airports Commission CEO Brian Ryks said the goal is to create “an exceptional airport experience for the millions of passengers who travel through” the airport annually. The plan calls for a unified design for the concourses and about 75 Delta gates, with new flooring, wall finishes and brighter LED lighting. Technology upgrades will improve flight and gate information screens. More power outlets will be added at gate seating. The MAC is investing $182.5m in the project, with Delta contributing $60m. No taxpayer funds will be used. Most of the work will occur at night so little disruption is expected for flight activity, officials said.<br/>
Like hurricanes, blizzards or wildfires, Taylor Swift is now prompting an airline to waive ticket-change fees. The popstar said she was postponing a show in Argentina’s capital scheduled for Friday until Sunday because of heavy rain, writing on X, the platform formerly called Twitter: “due to the weather being so truly chaotic it would be unsafe to try and put on this concert.” The Chile account of LATAM Airlines, the largest carrier in South America, reached out to customers on X: ”#AttentionSwifties: we know your planes changed so starting today we are updating our flexibility policy for those with flights from Buenos Aires” for Saturday or Sunday. The Chie-based carrier said it is waiving both ticket-change fees and differences in fare if travelers can fly anytime until Nov. 17 after Swift’s show at Argentina’s largest stadium was postponed. Some customers complained to LATAM on social media, however, that they were having trouble finding seats and that the carrier told them about the waiver too late. The airline didn’t immediately comment on whether it is adding additional flights. Airlines routinely add extra flights for events like high-profile concerts, conferences like CES, or sports. But a change fee waiver when a concert is canceled or is postponed is very unusual, industry executives told CNBC, and is also a sign of how much her tour drives bookings. While it might be a new era for airline waivers, The Eras Tour has impacted other industries like hotels.<br/>
Iceland has declared a state of emergency, with police officials urging residents to evacuate the coastal town of Grindavík following an intense wave of earthquakes in the southwest of the country linked to a possible volcanic eruption. Nearly 800 quakes were recorded between midnight and 2 p.m. on Friday, with the shallowest at a depth of 3-3.5 kilometers (1.86-2.18 miles), according to the Icelandic Meteorological Office. In statements Friday, Iceland’s Civil Protection Agency said a magma tunnel that is forming could reach Grindavík. But as of Friday evening, the Icelandic authority said it has been impossible to tell if and where the magma might break through to the surface. “Earthquakes may become bigger than those that have already occurred, and this sequence of events could lead to an eruption. However, there are still no signs that the magma is nearing the surface. Its progress is being closely monitored,” the Civil Protection Agency said. Authorities urged residents to evacuate calmly and emphasized that there is no imminent danger.<br/>
Angolan President Joao Lourenco on Friday opened a long-delayed international airport outside the capital Luanda, with passenger flights scheduled to begin in early 2024. The Dr. Antonio Agostinho Neto Airport, named after the nation’s first president and located 40 km southeast of the city, was originally scheduled for completion in 2017. It will initially open for cargo traffic before the commencement of domestic passenger flights in February, followed by international flights in June. It was projected to cost $5b — though the government has revised that down to $3.85b — and will be able to handle 15m passengers a year.<br/>
Dubai will stage its high-profile aerospace pageant next week against the backdrop of the Israel-Hamas war in Gaza that is pushing up demand for weapons while closing airspace and making flights longer and more expensive for some airlines. The biennial Dubai Airshow is typically a barometer for the aviation industry that in the past has produced a frenzy of commercial deals for planemakers Airbus and Boeing. It is also an opportunity to test the mood of arms buyers. Analysts have said the war in Gaza is likely to push up demand for weapons on top of a surge in the past 18 months as the United States and its allies rearm Ukraine against Russia. Washington has vowed to supply Israel with the weaponry it needs in its fight against Hamas, which Israeli authorities say killed 1,400 people when it stormed into Israel on Oct. 7. Israel's retaliatory assault on Gaza has killed more than 10,000, according to health authorities in the besieged enclave. Organizers have said they are expecting more than 1,400 companies from 95 countries, including four listed from Israel. The fighting has disrupted some commercial passenger travel, with airlines suspending flights to Israel where the airport has been targeted by Hamas rocket fire and tourism has collapsed. And as Middle East officials warn of a risk of regional spillover, travellers are cancelling or postponing planned vacations to the Middle East and North Africa. The Nov. 13-17 event is "going to be a really interesting show from a geopolitical standpoint", said Richard Aboulafia of AeroDynamic Advisories. The war in Israel is not expected to unravel long-planned orders, but carriers in areas seeking to exponentially increase air travel - such as Saudi Arabia – may face questions about whether the conflict softens future growth plans, he said. Emirates COO Adel Al Redha said last week that demand from markets in parts of Asia had been "slightly impacted" by the war, now in its fifth week. "While we don't wish for any conflict we are used to being able to adapt our operation and mitigate every risk," he said. The CE of the national airline of Jordan, which neighbours Israel, said there had been a major drop in its reservations, while the airline was now flying longer routes to avoid Israeli airspace, which was driving up operating costs. "This is our fate," said Royal Jordanian CEO Samer Majali, lamenting the region's history of conflict and instability.<br/>
The Middle East’s aircraft fleet is expected to more than double by 2042 with new-technology widebodies leading the way, according to Boeing. Boeing forecasts widebody airplanes will comprise 45% of deliveries to Middle East airlines over the next 20 years ─ the highest percentage of the 10 global regions featured in Boeing’s Commercial Market Outlook (CMO) forecast. The CMO projects delivery of 3,025 new commercial airplanes in the Middle East by 2042, including 1,350 widebodies. The region’s fleet of dedicated freighters is projected to more than double to 180 jets by 2042, according to the CMO, Boeing’s annual long-term forecast of demand for commercial airplanes and services. “Airlines in the Middle East have increasingly expanded their influence and reach, transforming the region into an international air transit hub,” said Darren Hulst, Boeing vice president, Commercial Marketing. “Air travel and cargo demand continue to gain momentum, driven by significant economic growth and national development plans. As airlines in the region will require efficient and versatile fleet solutions, Boeing products will be ready to meet market demands.”<br/>
Boeing may finally see a sales breakthrough for its 737 Max aircraft in China when presidents Joe Biden and Xi Jinping meet this week, ending a long commercial freeze in a critical overseas market for the US planemaker. The Chinese government is considering unveiling a commitment for Boeing’s 737 jetliner during the APEC Summit in San Francisco, as a signal of a recent thaw between the two nations, said people familiar with the matter who aren’t authorized to speak publicly. Terms of a potential agreement are still under discussion, and could change or fall apart before the heads of state meet on Wednesday, they cautioned. While the White House has made resuming military communications with China a top priority at the summit, the rare meeting between the two global leaders also provides an opportunity to reset trade on aerospace. A 737 Max agreement would mark an important breakthrough for Boeing, after it lost its market lead in China to arch-rival Airbus SE. The US manufacturer hasn’t made any significant sales of its best-selling narrowbody jets in China since at least 2018, before two crashes led to a global grounding of the model. Since then, tensions between the two governments have stifled commercial dealmaking. Boeing declined to comment. China’s Foreign Ministry didn’t immediately respond to a request for comment. Xi isn’t expected to unveil a formal order for the 737 Max, Boeing’s largest source of revenue, said the people. Aircraft commitments falling short of a firm sale often take the form of a memorandum of understanding or letter of intent.<br/>
Asia-Pacific airlines face headwinds from rising fuel prices and high inflation, industry executives said on Friday, adding to a downbeat outlook for a segment where travel demand is struggling to recover fully to pre-pandemic levels. The region's air travel recovered to just 69% of 2019 levels for the year through September, trailing all other regions, impacted mainly by China's slow reopening of borders after COVID-19, according to the IATA. "Industry recovery has been slowed by inflation, the tight job market, supply chain constraints and fuel prices, which are still higher than in 2019," Subhas Menon, Director General of the Association of Asia Pacific Airlines, told its annual gathering. "Non-oil costs are also escalating in areas like ground handling and taxation, thus squeezing the profit margins for airlines," he said, adding supply chain issues continue to impact deliveries of new aircraft and spare parts for maintenance. Singapore Airlines posted on Tuesday a record profit for the six months ended September, but profit in Q2 slipped 3.7% from the previous quarter, underscoring the growing cost pressure. "As people added capacities in the recent half year, in terms of yield it has actually come down," said SIA CEO Goh Choon Phong, in response to a question on whether air fares have peaked. The industry is banking on Chinese travellers returning in full force to kick off a fresh wave of growth, which Menon expects by the first half of next year. China was the largest air travel market before COVID, accounting for a fifth of international travel within Asia Pacific and 6% globally. But that has fallen to 10% and 2%, respectively, this year, as recovery in China has been mainly focused on domestic travel and the slow lifting of restrictions on group tours to popular overseas destinations limited international travel.<br/>
Boeing says Southeast Asia’s commercial airplane fleet will nearly quadruple to more than 4,000 jets by 2042, becoming one of the global leaders in air traffic and fleet growth. As LCCs become the dominant business model and expand networks across the vast region, Southeast Asia will be the world’s fastest-growing single-aisle airplane market through the 20-year forecast period. These projections are included in Boeing’s 2023 Commercial Market Outlook (CMO), the company’s annual long-term forecast of demand for commercial airplanes and related services. "As the Southeast Asia market reopens, air traffic will grow substantially,” said Dave Schulte, Boeing Commercial Marketing managing director for Asia-Pacific. "Expanded connectivity, tourism and low fares will continue to stoke new and increased travel, especially among a growing middle class across the region. The role of LCCs will continue to rise to fill that demand for air travel.” LCCs in Southeast Asia will add more than 2,000 new single aisle jets over the next 20 years, nearly two-thirds of overall projected 3,390 single-aisle deliveries in the region. LCCs will transport 56% of passenger traffic in 2042, compared to 22% in 2012.<br/>
As developing countries weigh the consequences of borrowing heavily from China for major infrastructure projects, anti-corruption officials in Nepal have begun an investigation into a flagship airport financed and built by Chinese state-owned companies. Nepal’s $216m international airport in Pokhara, the country’s second-biggest city, opened in January. China agreed to provide loans to build the airport more than a decade ago. Nepal tapped China CAMC Engineering, the construction arm of a state-owned conglomerate, Sinomach, as the contractor. The airport has failed to attract any regular international flights, raising concerns about whether it will generate enough revenue to repay loans to its Chinese lenders. Nepali officials have asked Beijing to change the loans into a grant to ease the financial burden, but China has not agreed to do so. Last month, The New York Times reported that CAMC had inflated the cost of the project and undermined Nepal’s efforts to maintain quality control, putting a priority on its own business interests. Nepal’s Civil Aviation Authority, the agency overseeing the airport’s construction, did not put up much resistance — reluctant to upset Beijing on an important project for both countries. Shortly after the article’s publication, Nepal’s Commission for the Investigation of Abuse and Authority raided the Pokhara offices of the Civil Aviation Authority and seized documents related to the project.<br/>