Middle East conflict disrupts business travel, with full recovery still uncertain

Ongoing tensions in the Middle East have significantly disrupted global business travel, grounding key routes and driving up costs for South African travellers, according to Corporate Traveller.

The company on Wednesday said that at the height of the crisis on 28 February, major long-haul carriers including Emirates, Etihad Airways and Qatar Airways were forced to halt operations due to airspace closures, leaving thousands of passengers stranded across key transit hubs such as Dubai, Abu Dhabi and Doha.

While operations have gradually resumed in recent weeks, the travel environment remains fragile. Emirates, for example, has restarted flights, currently operating two daily services from Johannesburg and one from Cape Town, with plans to resume Durban routes soon.

According to Herman Heunes, general manager for Corporate Traveller, uncertainty continues to affect schedules.

“The Middle East normally acts as the primary aviation corridor connecting South Africa to Europe, Asia, and beyond,” he said, adding that fares are climbing for several reasons.

“Supply and demand is a factor, but so are rising oil prices, longer flight paths and associated operational costs (as airlines avoid restricted airspace), and increased operational expenses, including insurance premiums, which are often passed on to travellers. Alternative hubs, including Addis Ababa, Singapore, and various European gateways, are growing in popularity as travellers seek non-Gulf routings, further compressing available capacity and driving up last-minute prices.”

Heunes added that Corporate Traveller’s latest booking data shows a spike in sales for, among others, Ethiopian Airlines, British Airways, Virgin Atlantic, Lufthansa, KLM, Air France, Singapore Airlines, Cathay Pacific, and Air China.

“The practical implication is clear: if your team is booking independently, they are competing for constrained seats, without the expertise, priority access, and supplier relationships that a managed travel programme provides,” he said.

Corporate Traveller said that the most pressing question over the last few weeks has been around what travel insurance will – and won’t – cover.

Jason Veitch, business head for accident and health at Santam Travel Insurance (formerly TIC), speaking during a recent ASATA webinar said that war is a universal exclusion across all travel insurance products globally.

“It’s not unique to South Africa, any single insurer, or indeed the travel industry. War exclusions exist because the scale of conflict can affect hundreds of thousands of travellers simultaneously – and no insurance pool can absorb that,” said Veitch.

“But while war exclusions apply to trip cancellation and curtailment, including additional accommodation costs, other benefits, like medical, remain in place.” 

Veitch said that this is important because unexpected medical costs can be crippling for travellers.

“The main reason for travel insurance is actually medical. And that's what sometimes gets lost in these conversations. Medical cover is still available. Luggage cover is still available. Other benefits are still available. We have had policyholders in hospitals in the region being cared for under their travel insurance. That’s exactly what a policy is there for.”

Meanwhile, Heunes said that travel insurance remains non-negotiable.

“It’s important to read the Ts&Cs. Different policies will have different wording dealing with war exclusions, known events, and government advisories. It’ll impact companies doing business in different regions across the world,” he said.

“Understanding what your team is covered for, including medical evacuations, and what territorial limitations might apply, is critical to managing risk.”

Heunes added that during a disruption of this nature, airlines have clear obligations to their passengers.

“If your flight is cancelled before you depart, you are entitled to an alternative flight or a full refund, with no penalties. If you have already departed and find yourself stranded mid-journey, that responsibility expands: the airline must rebook you, reroute you through partner carriers if necessary, and accommodate you until you reach your final destination,” Heunes said.

“Emirates, Etihad, and Qatar have handled an extraordinarily difficult situation with real professionalism. Extended call centre hours, regular updates, and clear communication with agents – they've worked hard to keep the trade informed and to process changes and refunds as quickly as possible. It’s made a real difference.”

BUSINESS REPORT