Airlines are hoping 2026 is a short, sharp fuel shock, but with supply routes at risk and fewer policy tools available, this crisis could last longer and test demand in ways recent history hasn’t.
Security fears have done what even visa hassles and high prices never could, convincing the world's biggest tourism market to just stay closer to home.
India’s inbound travel was already fragile, now it’s being stress-tested. With Middle East routes disrupted, getting to India is harder, pricier, and slower, and that’s translating into lost bookings.
Lufthansa had CityLine marked for eventual closure before the Iran war. Soaring fuel prices and labor unrest just ripped away any remaining patience for a gradual wind-down.
Akasa built five of six international routes into the Middle East. With the Gulf in conflict, Southeast Asia has now become the Indian carrier’s viable growth corridor.
Hilton CEO Chris Nassetta is making the strongest bull case in the hotel sector right now, and early U.S. industry data backs him up. But the Middle East and the World Cup remain open questions.