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Middle East conflict triggers 37,000 flight cancellations, oil surge, and airline stock plunge as carriers resume limited operations
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The US-Israel-Iran war starting February 28, 2026, has caused over 37,000 flight cancellations in the Middle East through March 8, alongside airspace closures, nearly $1 billion in aviation losses, and oil prices up over 15%. Airlines including Qatar Airways, Emirates, and Etihad are resuming limited schedules, while Air India adds extra flights amid surging airfares and battered stocks.
Indonesia's Transportation Ministry assures that international flights continue operating amid Middle East tensions. The Directorate General of Civil Aviation denies reports of a full suspension.
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American Airlines has announced new nonstop service from Philadelphia to Santiago in the Dominican Republic, starting May 21, 2026. The flights will operate four times a week, marking the first such direct connection since 2022. The airline is also expanding its service to Santo Domingo earlier than planned.
Avelo Airlines has extended its flight schedule through mid-November 2026, adding 30 destinations across the United States and Puerto Rico. The ultra-low-cost carrier now offers one-way fares starting at $42 to cities including Florida, Michigan, and Illinois. This expansion enhances connectivity for leisure and business travelers via smaller airports.
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Air travel in South Korea experienced significant disruptions as Korean Air and Philippine Airlines cancelled seven flights from Incheon International Airport and Jeju International Airport. The cancellations affected routes to New York, Boston, Manila, Cheongju, and Yeosu, impacting both international and domestic passengers. These events occurred across multiple days in late February 2026.
Latam group transported 87.4 million passengers in 2025, a 6.6% increase from the previous year, driven by domestic demand in Brazil and international travel. In December, it carried 7.9 million passengers with an 84.5% occupancy rate. The airline expanded its network with 10 new routes, now connecting 160 destinations in 27 countries.
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Mexican airlines Volaris and Viva Aerobus have announced the formation of Grupo Más Vuelos, a corporate structure integrating both without merging their brands or operations. The alliance aims to strengthen their position in the air market with low-cost flights, reaching 86 destinations and 991 daily flights combined. The announcement boosted Volaris shares on the Mexican Stock Exchange.
Airline Stocks Tumble Amid Oil Surge from U.S.-Israeli-Iran War
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