Repatriation flights set to depart as Middle East airspace remains largely empty and airline share selloff eases

Dubai, March 4, 2026 (Saudi Arabia Breaking News) – Dozens of repatriation flights were due to take off from the Middle East on Wednesday as governments try to bring tens of thousands of stranded citizens home, while the selloff in global airline shares eased even as the U.S. and Israeli air war against Iran escalated.

The airspace over most of the Middle East remained largely empty on Wednesday, with major Gulf hubs including Dubai, the world’s busiest international airport, shut for a fifth day, in the biggest travel crisis since the COVID-19 pandemic.

The first repatriation flights were due to leave for Britain and France on Wednesday, and the United Arab Emirates opened special corridors to allow some citizens to return home. Thousands of flights normally take off in the region. Marooned tourists and some expatriates have also tried to find their own way out.

Airline shares were less volatile on Wednesday after double digit percentage drops in recent days wiped tens of billions of dollars from airlines’ market value. Lufthansa was up 1.7% at 1013 GMT, while Qantas was 2.7% lower. Both have lost more than 10% of their value so far this week, their worst week in almost a year. BA owner ICAG was up 2%, after falling more than 11% in the past three days.

Airline executives have said crew and pilots are now scattered across the world, complicating the process of resuming flights when airspace reopens. Soaring oil prices will also add to carriers’ costs. Other analysts said flights will become more expensive as longer routes become the only options for international carriers.

The Gulf is also a major hub for air cargo, putting further pressure on international trade routes.

Most Asian airline shares pared losses from earlier in the week. Korean Air Lines shares fell 7.9% after dropping 10.3% on Tuesday. “It is just a different market reaction time as many European airlines have already reacted more since the war started,” said Gary Ng, a senior economist at Natixis. “As the market prices in a longer duration war with higher energy prices and weaker currencies, it affects the whole sector broadly, including APAC airlines.”

Japan Airlines stock fell 2.9% on Wednesday after losses of 6.4% on Tuesday. Major Chinese carriers Air China and China Southern Airlines closed down between 1% and 3%.

Oil prices have risen sharply this week, with Brent crude oil up around 14% since the U.S. Israeli strikes on Iran, potentially pushing up fuel costs for airlines. Hedging is expected to help mitigate some of the cost increases. “Recent guidance indicates that the airlines have hedged around 50% of their jet fuel needs. In general, they should be able to pass through the balance of the price rise to passengers,” said Lorraine Tan, director of equity research for Asia at Morningstar.