Middle East: The escalation of geopolitical events across the Middle East has caused severe travel disruption. Local authorities and operators respond.
Casualties and destruction have been reported across at least nine countries since the US and Israel launched a coordinated attack on Iran, resulting in counter-strikes from Iran on Israel and throughout the Gulf.
The General Civil Aviation Authority (GCAA) of the UAE said that the state is “bearing all hosting and accommodation costs for affected and stranded passengers”. Temporary accommodation has been provided, along with meals and refreshments, in addition to facilitating rebooking procedures in line with the approved operational plans.
The Dubai Department of Economy and Tourism (DET) has also emailed hotels to “support affected guests by facilitating extensions to stays under existing booking conditions”.
Qatar Tourism has requested that hotels extend stays for those who cannot leave due to the airspace closures. The authority added that it will “cover the additional costs incurred, as the safety, security and wellbeing of all visitors remain among our highest priorities”.
At the weekend, missiles caused a fire at Fairmont The Palm in Dubai which left four people injured. A press statement from Accor’s team in the Middle East said the company is “closely monitoring the situation” and is ensuring that the “safety and security of our colleagues, partners, and clients remain the utmost priority”.
Urban Chic, which introduced its first serviced apartments in Abu Dhabi a few months ago, said: “Conditions within Abu Dhabi and the wider UAE remain calm, orderly, and well-managed. Daily life continues as normal across the Emirates, with businesses operating, hospitality venues open, and communities functioning responsibly under clear government guidance.”
Urban Chic has confirmed that all of its properties are fully operational. The company has activated “enhanced guest communication protocols” and has teams on the ground providing direct support to travellers. Close coordination is ongoing with the Department of Culture and Tourism and relevant authorities to ensure guests receive information and assistance where required.
“As operators on the ground, we are seeing first-hand the calm and composed response across the country,” said a spokesperson for Urban Chic. “The UAE leadership has acted with clarity, organisation, and decisiveness. There is a strong sense of stability and reassurance among residents and visitors alike.”
Cirium, an aviation analytics firm, reports that at least 11,000 flights into, out of, and within the Middle East have been cancelled since Saturday 28 February. The disruption has affected more than one million passengers.
The firm estimated that at least 90,000 people change flights daily at airports in Dubai, Doha or Abu Dhabi, and just on three airlines: Emirates, Qatar Airways and Etihad Airways.
A limited number of flights departing the UAE and Abu Dhabi have restarted, though Hamad International Airport – Doha’s primary commercial airport – remains shut at the time of writing.
Ross Veitch, CEO and co-founder of metasearch platform Wego, said: “The impact of airspace closures and widespread flight disruptions is being felt immediately, with our platform seeing a surge in re-bookings, cancellations, and customer enquiries.”
Outside the region, other airlines such as Virgin Atlantic, Lufthansa, and British Airways, continue to reroute flights that had been scheduled to fly near the conflict zone.
The US state department has called on Americans to immediately depart more than a dozen countries in the Middle East, including Saudi Arabia and the UAE. The US has not organised its own evacuation flights.
The UK Foreign, Commonwealth and Development Office (FCDO) has warned against all but essential travel to the UAE, Kuwait, Qatar, and Bahrain, and all travel to Israel and Palestine. A warning has also been issued to all Brits in those countries plus Saudi Arabia and the city of Duqm in Oman to stay indoors and register their presence.
At the time of writing, around 100,000 Brits in the UAE and other Gulf nations have registered their locations and contact details with the Foreign Office. The UK Government is making contingency plans for the mass evacuation of Britons who are stranded if the airspace remains closed for a prolonged period. One potential route could involve people travelling by land to Saudi Arabia from where they could board flights.
Monica Eaton, founder and CEO of Chargebacks911, said: “Travel disruption has a second chapter, and it usually shows up in the dispute queue. When customers cannot get fast answers or refunds, many go straight to their bank. What begins as a service issue can quickly turn into a chargeback.
“In moments like this, visibility is everything. Teams that monitor dispute signals in real time and communicate clearly with customers will contain far more of this risk before it escalates. Geopolitical events are outside any merchant’s control. What they can control is speed, clarity and follow-through. Those three things still make the biggest difference in whether a customer files a dispute.”
From an investment perspective, Peachtree CEO Greg Friedman wrote on LinkedIn: “Geopolitical shocks usually trigger a flight to safety, which can push Treasury yields lower at first. If oil remains elevated, inflation expectations rise and that puts pressure back on the long end. The result isn’t necessarily higher rates; it’s more volatility.
“Commercial real estate doesn’t just price off the 10-year. It prices off confidence and liquidity. When uncertainty rises, credit spreads widen, lenders tighten, and transactions slow. Even if rates drift down, cap rates don’t automatically follow when risk premiums expand. For hotels, higher energy means margin pressure. Higher airfare and gasoline influence discretionary travel. Lower-tier and heavily levered assets tend to feel it first… Expect more noise. Expect wider bid-ask spreads. Expect more recapitalisations and structured solutions.”
