IATA: Airlines outside Middle East absorb most demand displaced by conflict

IATA Economics reported (15-May-2026) routes linking Asia Pacific to other regions via the Middle East have been the most disrupted by the war in Iran. Details include:

• Airlines outside the Middle East increased capacity to compensate for lost service from Middle Eastern carriers, but not enough to fully offset the decline. This pushed passenger load factors to record highs in Mar-2026;
• Passenger demand remained resilient in Mar-2026, with traffic to and from Asia Pacific up 3.6% year-on-year;
• The Asia Pacific-Europe region pair accounts for the largest share of connecting traffic handled by Middle Eastern hubs. Displaced demand from Middle Eastern carriers was absorbed by Asia Pacific airlines (traffic up 23%) and European carriers (+15%);
• The Asia Pacific-Africa market is the most dependent on Middle East airports for connections. European, African and Asia Pacific airlines absorbed displaced demand in Mar-2026, with European carriers growing more than 80% from a low base;
• Similar patters were observed on Asia Pacific-Latin America and Asia Pacific-North America routes. [more - original PR]