Iran war grounds flights, batters Bangladesh aviation, hotels
Daily losses are mounting as disruptions continue
Highlights:
- Middle East conflict disrupted Bangladesh–Gulf flights, causing widespread cancellations
- About 447 of 895 scheduled Middle East flights cancelled
- Airlines losing hundreds of passengers daily and significant revenue
- Gulf airspace closures disrupted major global aviation transit hubs
- Dhaka airport losing passenger fees, airline charges and tax revenues
- Hotels facing booking cancellations and falling occupancy rates
The ongoing conflict in the Middle East has severely disrupted flights between Bangladesh and Gulf countries, inflicting mounting losses on the aviation and hospitality sectors over the past two weeks.
The United States and Israel launched coordinated missile and air strikes on Iran on 28 February. In response to escalating security risks, Iran, Iraq, Kuwait, the UAE, Bahrain, Qatar and Jordan closed their airspace, triggering widespread flight cancellations across the region.
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Data from the Civil Aviation Authority of Bangladesh (CAAB) show that about 447 of the 895 scheduled flights on migrant-heavy Middle Eastern routes were cancelled until yesterday following the outbreak of the conflict.
Airport officials said the cancellations represent more than 20% of all scheduled flights, causing major inconvenience for passengers while eroding revenues for airlines, regulators and businesses linked to the travel industry.
Aviation experts say the full financial impact is still difficult to determine. However, as disruptions persist, daily losses are mounting and could reshape the affected sectors if the situation continues.
Kazi Wahidul Alam, a former board member of Biman Bangladesh Airlines, said disruptions to air travel ripple through several connected industries.
"Declining passenger numbers directly hit airport revenues, hotel occupancy, restaurants and road transport," he said.
"Airline crews also stay in hotels, so when flights are cancelled the impact spreads across multiple services."
With an average of around 250 passengers per flight, he said, the cumulative losses across the industry are significant.
Airlines losing passengers and revenue
Airlines operating Middle Eastern routes say the cancellations have already translated into steep revenue losses.
Kamrul Islam, general manager (public relations) at US-Bangla Airlines, said the carrier is losing hundreds of return passengers each day due to reduced operations.
"We are losing about 600-700 passengers daily who would normally return from the Middle East," Kamrul told The Business Standard.
With the average one-way airfare at roughly Tk50,000, the airline is losing a substantial amount of revenue each day.
Since the crisis began, about 30 of the airline's Middle East-bound flights have been cancelled. The total financial loss is yet to be calculated as refunds and rescheduling continue.
Before the disruptions, US-Bangla operated multiple flights to Dubai, Abu Dhabi and Sharjah. Flights to Sharjah and Abu Dhabi remain suspended, while services to Qatar have also been halted.
The airline has announced plans to resume Sharjah flights on 13 April and Abu Dhabi flights on 14 April.
Ripple effect across global travel routes
The Gulf region functions as one of the world's largest aviation transit hubs, linking passengers travelling between Asia, Africa, Europe and the Americas.
Before the crisis, airports in Dubai, Abu Dhabi and Doha served as major global crossroads.
Nearly 300,000 passengers pass through one of these hubs daily, about two-thirds of whom are transit travellers, according to a report published by The Guardian on 7 March.
When airspace closures disrupted flights through these hubs, the effects spread across the global aviation network, stranding travellers and forcing many to cancel trips.
The impact is particularly pronounced for Bangladesh, where a large share of international travellers rely on Gulf carriers such as Emirates, Qatar Airways, Etihad Airways and Saudia for onward connections.
Domestic airlines also affected
Domestic carriers are also facing pressure as the number of transit passengers travelling through Dhaka declines.
Many travellers from outside the capital normally take domestic flights to Dhaka before boarding international services. With flights through Gulf hubs curtailed, demand for these feeder routes has fallen.
Sohel Majid, director of marketing and sales at Novoair, said ticket cancellations have surged on the Sylhet route.
"Each Sylhet flight is now seeing 20 to 25 refunds, which is nearly 40% of our passenger load," he said.
However, Majid added that the airline's overall impact remains manageable due to its relatively small network, which currently serves Cox's Bazar, Sylhet, Saidpur and Chattogram.
Airport revenues, ground handling income fall
Dhaka's Hazrat Shahjalal International Airport normally handles 190 to 300 flights daily, serving around 30,000 to 35,000 passengers.
Since the conflict began, an average of 32 flights per day have been cancelled.
Assuming an average of 250 passengers per flight, airport authorities estimate that the cancellations have reduced passenger numbers by about 8,000 travellers daily.
Each international flight generates multiple revenue streams for airport operators and service providers, including landing and parking fees, navigation charges, passenger service fees, security levies and ground-handling payments.
In Bangladesh, Biman Bangladesh Airlines provides ground-handling services to all foreign carriers, making the national airline directly exposed to declines in international flight movements.
Biman suspended flights on six Middle Eastern routes indefinitely, although services on at least two routes partially resumed on 12 March.
Biman spokesperson Boshra Islam said the airline is losing both ground-handling income and ticket sales.
"The full financial impact will take time to assess as refunds and rescheduling are still ongoing," she said.
Industry estimates suggest airlines pay around $7,000 in combined charges for a narrow-body aircraft and roughly $12,000 for a wide-body aircraft during a standard turnaround at Dhaka airport.
With about 450 flights cancelled so far, the disruption has significantly dented operational earnings for CAAB and Biman's ground-handling business.
Government revenue has also fallen, as each outbound international passenger typically pays $45–$55 in travel taxes, embarkation fees, security charges and excise duties.
Dhaka Airport executive Group Captain Ragib Samad said authorities are still evaluating the overall impact.
"We are losing revenue both from passengers and from airlines," he said.
Hotels also feel the impact
The hospitality sector has also begun to feel the shock through cancellations and weaker bookings.
Industry insiders say star hotels typically experience strong booking pressure ahead of Eid, but reservations have now fallen by 20% to 25%.
While travellers from Gulf countries themselves represent only a small share of hotel guests, the sector relies heavily on international transit passengers arriving via Middle Eastern hubs.
With flights reduced, the number of travellers from Europe and North America connecting through Gulf airlines has dropped, affecting hotel occupancy.
A general manager of a five-star hotel in Gulshan said the crisis has caused both immediate cancellations and a slowdown in future bookings.
The hotel alone has lost bookings worth around Tk70 lakh over the past week to 10 days, equivalent to roughly 10% of its projected monthly revenue.
Meanwhile, officials at Radisson Blu Dhaka Water Garden said the hotel has seen occupancy fall by around 30% in recent days.
