The global travel industry is once again navigating chaos after conflict has broken out between the US and Iran.
Iran, Iraq, Israel, Syria, Kuwait and the United Arab Emirates closed their skies hours after the United States and Israel launched strikes on Iran on Saturday after Dubai airport was hit by blasts.
Flight-tracking website FlightAware showed more than 19,900 flights had been delayed globally and more than 2,600 cancelled worldwide as of 3pm AEDT on Sunday.
The Middle East is a popular transit route for Australians travelling to Europe.
Intrepid’s ANZ managing director Brett Mitchell told Travel Weekly that the operator’s primary concern is its customers and operators in the region. Intrepid has around 50-60 staff across the Middle East and has plans to double the number of visitors to the Middle East by 2030.
Meanwhile Rose Febo was one of many travel agents to turn to social media to reassure her customers.
“If you are travelling within the next 72 hours, we will be in direct contact with you should your booking be impacted or if any action is required,” she said.
With the conflict still evolving, the impact on travel is still taking shape but here’s what the Australian travel industry needs to know so far.
How many Australian passengers are stranded?
Around 115,000 Australians are estimated to be in the Middle East as widespread airspace closures across one of the world’s busiest transit corridors between Europe, Africa and Asia. Major Gulf carriers Emirates, Etihad Airways and Qatar Airways have suspended flights after operations halted at key hubs in Dubai, Abu Dhabi and Doha, leaving travellers facing cancellations, diversions and lengthy delays.
What has Smartraveller said?
Smartraveller has updated its advice across the Middle East, with “do not travel” warnings in place for Iran, Iraq, Syria and Yemen, and guidance to reconsider the need to travel to Saudi Arabia and Oman as regional tensions escalate. Key aviation hubs including the United Arab Emirates and Qatar are also affected, raising the risk of flight cancellations, airspace closures and delays for Australians transiting between Europe, Africa and Asia. Travellers are being urged to monitor official advice closely, follow instructions from local authorities and check with airlines for the latest updates as the security situation continues to evolve.
How have the travel industry bodies responded?
ATIA: The Australian Travel Industry Association (ATIA) is urging Australians to remain calm and only contact their travel agent or airline if they are due to depart within the next three days, as accredited agents prioritise travellers with imminent departures. ATIA CEO Dean Long is reminding travellers to follow official advice, avoid unnecessary cancellations that could affect refund and rebooking entitlements, and expect some delays as airlines adjust schedules. “Travellers shouldn’t panic or cancel unnecessarily. The one thing we learned through COVID is don’t cancel, as it reduces the number of rights you have. Let the airline make that decision,” Long said.
ATIA added that airlines have extensive experience managing airspace disruptions, while accredited travel businesses are best placed to handle changes, rebook flights and ensure travellers receive their full entitlements under Australian Consumer Law, reinforcing the value of booking through an ATIA Accredited Travel Business during volatile situations.
CATO: While many CATO-accredited tour operators do not manage international air ticketing directly, managing director Brett Jardine warned the downstream impact could be significant, particularly through delayed arrivals, split groups and itinerary changes.
“This is primarily an operational continuity issue for tour operators. Delayed arrivals, split groups and itinerary adjustments can create commercial and logistical pressure if not managed early,” Jardine said. CATO has advised members to review upcoming departures, confirm passenger air status with partners, prepare for staggered arrivals and revisit contractual provisions around minimum numbers and cancellations, while emphasising calm, measured communication and proactive coordination to minimise disruption.
Will travel insurance pay?
Travel insurance is unlikely to cover disruptions linked to the escalating US-Iran conflict, with industry experts warning that most standard policies exclude events arising from war, military action, hostilities or official airspace closures. Comparetravelinsurance.com.au managing director Natalie Ball said these exclusions apply regardless of when a policy was purchased, meaning claims for cancelled flights, delays or additional expenses tied to the crisis are generally not covered.
Travellers affected by suspended services through Middle Eastern hubs such as Doha, Dubai and Abu Dhabi are instead advised to seek refunds, credits or rebooking options directly from airlines or travel providers, many of which have introduced travel waivers. Government “Do not travel” warnings can further limit eligibility to claim, particularly if travellers proceed against official advice, highlighting the importance of checking policy details and booking flexible fares during periods of geopolitical instability.
What about surrounding locations such as Egypt + Jordan?
Bunnik Tours joint CEO Dennis Bunnik told Travel Weekly that tours to Egypt and Jordan are continuing to operate as normal despite the ongoing disruptions, with all sights open and no practical impact on ground operations, although one upcoming departure was cancelled after passenger flights were scrapped.
“We currently have tours operating in both Egypt and Jordan. These are proceeding as normal with all sights open,” he said. “We had one departure due out on Saturday with passenger flights cancelled. We have subsequently cancelled this departure.”
Bunnik said teams are prioritising tours starting and ending in the coming days by arranging alternative flights and contacting passengers to provide reassurance and guidance, noting there had not been mass cancellations so far.
“Our teams have been fully briefed this morning and are experienced in dealing with these types of disruption crisis. We are actively reaching out to all passengers and travel agents whose passengers are due to depart in the next 7 days,” he said, adding that local teams in the region were safe and accounted for and that there had been no practical impact to tours.
While acknowledging the situation may heighten anxiety for travellers and agents, Bunnik stressed that safety remains the highest priority and that Egypt and Jordan continue to be iconic destinations, adding that crisis events like this highlight the value of booking through professional travel agents and tour operators who have been assisting impacted travellers throughout the disruption.
What are the possible long-term implications?
The global travel industry is bracing for potential long-term impacts as oil markets prepare to react to escalating conflict in the Middle East, amid reports the Strait of Hormuz – one of the world’s most critical shipping routes – has been closed to tanker traffic. The strait is a vital corridor linking major oil producers to international markets, and any sustained disruption could drive a surge in fuel prices with flow-on effects for aviation costs, airfares and travel demand worldwide.
The surrounding region, including Saudi Arabia, Iraq, Iran, the UAE, Kuwait, Qatar, Bahrain and Oman, accounts for around 27 per cent of global crude oil production, underscoring the significance of the waterway to the stability of energy markets and the broader travel sector.
