Economist Podcasts Flagging carriers: war shuffles the Gulf-airline flight deck
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Mar 18, 2026 
Simon Wright, an industry editor tracking business trends, digs into how the war in Iran is scrambling Gulf aviation, from cancelled flights and costly rerouting to pressure on fares. Shera Avi-Yonah, a business writer on tech and companies, explores why AI could unsettle the mighty PDF. There is also a look at fake meat’s fading appeal and the hype crash behind it.
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War Threatens The Gulf Airline Hub Model
- Gulf hubs became central to long-haul travel because Emirates, Etihad and Qatar connect three continents with subsidised service and low fares.
- Simon Wright says war now threatens both connecting traffic and Dubai tourism, even if flyers return later on heavy discounts.
Jet Fuel Bottlenecks Hit Airlines Harder Than Oil
- Airline pain comes not just from rerouted flights but from jet-fuel refining bottlenecks that push fuel prices up faster than crude oil.
- Simon Wright says 20% of jet fuel passes through Hormuz, while Asian refineries dependent on Gulf oil are conserving crude and refining more slowly.
Fuel Price Shock Will Reshuffle Airline Competition
- High fuel prices will hurt airlines unevenly because low-cost carriers spend more on fuel and some rivals hedged while others did not.
- Simon Wright says Ryanair, IAG and Qantas have protection, but big American and Chinese carriers could face huge costs as competitors exploit Gulf disruption with pricier Asia flights.