Commentary: Airlines In Middle East Adapt To 'Exceptional' As The Norm

The Arab Air Carriers’ Organization chose a spectacular yet awkward location for this year’s annual meeting. Delegates assembled in a five-star resort overlooking the Dead Sea, a uniquely beautiful and peaceful spot that is the No. 1 tourist destination in Jordan—at least in normal times. But just a few kilometers west on the other side of that salty lake, war continued in Israel and Lebanon. Days before, Jordan’s airspace was closed as Iranian missiles crossed the country, targeting Tel Aviv.

The airline industry in the Levant is again in the middle of a conflict. El Al is the only carrier still operating into Tel Aviv, with a mandate to keep Israel connected amid constant threats. On the Arab side, too, some airlines have been operating under extraordinarily difficult conditions, constantly weighing safety against the need to keep air links open. “Management is taking calculated risks,” Middle East Airlines (MEA) CEO Mohamad El-Hout said at the annual meeting.

With a home base in Beirut, MEA is now operating in a war zone. “Our top priority is keeping Beirut connected without risking the lives of the crew and passengers,” El-Hout said. Achieving that is also deeply personal for him, as his son continues to fly as a pilot for MEA. That the CEO’s son is still flying amid all the risks “has helped colleagues come to work,” he said.

Arab Air Carriers’ Organization Director General Abdul Wahab Teffaha noted that he sees “a glimmer of hope” because Beirut’s Rafic Hariri International Airport remains open. “Without it, I would lose faith,” he said. The organization itself operates from Beirut and has kept its office open throughout the recent escalation.

Daily operations are challenging, to say the least. Insurance premiums are through the roof. Aircraft fly into Beirut, but there are no layovers, and they remain parked at safe airports outside the country overnight. MEA also cannot fly its full schedule, and three of its Airbus A321neos are parked at Amman’s Queen Alia International Airport.

Even Royal Jordanian Airlines, which is not operating directly out of a war zone, has seen a substantial impact on its business. According to CEO Samer Majali, the carrier lost 30% of its bookings overnight after violence escalated in the region in October 2023. Western tourists in particular are avoiding the country, as evidenced by empty streets and hotels even in the tourist hot spots.

Royal Jordanian’s effort to establish a hub for the Levant is challenged by declining traffic in many countries of the region as a result not only of the conflicts in Israel and Lebanon, but also the civil war in Syria, Jordan’s neighbor to the north. At the same time, other routes are showing much stronger results, particularly services to Saudi Arabia used by Jordanians commuting between the two countries for work.

Despite this, Royal Jordanian continues its fleet modernization program. The carrier will take delivery of its first Airbus A320neo soon as well as nine Boeing 787-9s in the coming years. Given the long delays at both manufacturers, the timing of the deliveries is uncertain, Majali said, noting that delays of 8-10 months for A320neos are now typical.

All airlines operating in the Middle East are exposed to massive interference through GPS signal jamming and spoofing, creating potential safety hazards. Avoiding Israeli and Lebanese airspace adds up to 40 min. of flight time to European and North American services, making them markedly more expensive.

While the war has had a deep impact on air travel demand in Israel, Lebanon and Jordan, it has not been as much of a factor elsewhere in the Middle East. After the Oct. 1 Iranian ballistic missile strikes against Israel, the region’s biggest carrier, Emirates, temporarily suspended flights through Iranian airspace and rerouted European traffic via Saudi Arabia and Egypt. But soon the carrier returned to eastern Iranian airspace, along with airways in northern Iraq, to avoid the congested and longer westerly route when possible.

Emirates Airline Chief Commercial Officer Adnan Kazim noted that demand from the Levant in its network is coming back. The airline flies daily Airbus A380 service to Amman, a destination it served three times per day before the COVID-19 pandemic. Now it is looking at restoring higher frequencies to the market.