News of fare price rises and more flights cancelled or rerouted because of the Middle East conflict has prompted FCM Consulting to urge its business travel customers to book now and pay in full to avoid future pain.
With more than 30,000 flights cancelled since 28 February, the aviation sector faces severe disruption. Rerouted flights avoiding the region add upwards of 90 minutes to Europe-Asia journeys, costing airlines between US$6,000 and US$10,000 per hour in extra fuel.
Consequently, jet fuel costs have surged by 57 per cent, pushing global fares up by as much as nine per cent. Some key long-haul routes, such as London-Singapore, are particularly affected.
“Corporate travel programmes worldwide face a structural cost shift that demands immediate intervention to successfully navigate,” said Jo Lloyd, Global Head, FCM Consulting, a division of Flight Centre Travel Group.
“The disruption to Gulf hubs means Q2 budgets built before February are now obsolete. Travel managers must review their policy gaps urgently, particularly regarding premium cabin waivers and flexible fare allowances, as basic economy options present a financial risk during volatility.
FCM Consulting is advising corporate travel buyers to secure flexible fares early and prepare internal budget holders for material overspends on long-haul routes.
“The message is to book and pay in full now – that’s the best guarantee you can give yourself,” Lloyd said.
“Recent data from our Flight Centre Travel Group corporate division showed that travellers are taking measures to sidestep ongoing disruption in the Middle East by altering their flight paths to Europe and the Southern Hemisphere
“The insights showed that booking volumes between Europe and Australia via Changi – the world’s fourth busiest airport with 42.6 million seats in 2025 – soared by 38 per cent between Monday, 2 March, and Sunday, 15 March, compared with the two weeks prior.
“Corporates are finding ways to still travel – they just need the tools to navigate the rising costs to do so successfully – that’s where alternate routes and airlines come in.”
Review insurance coverage
Standard corporate insurance policies may now trigger war exclusions for travel through the affected regions, making an urgent review of coverage adequacy essential.
“Relying on a rapid return to Gulf hub routing presents a strategic risk for companies, as experts project a prolonged recovery period for regional capacity and safety perceptions,” Lloyd said. “This disruption requires robust predictive analytics and global standardisation to mitigate risk.”
FCM Consulting continues to model route exposure, identify alternative itineraries, review policy gaps, and prepare comprehensive programme impact assessments for enterprise clients navigating the airspace restrictions.
