Dubai’s aviation hub trembles: War-risk insurance surges, global airlines pull back

Dubai International Airport in Dubai, UAE. Flights were temporarily suspended after a drone-related incident near the airport, adding to disruptions as several international airlines suspend Gulf routes. (Photo: Xinhua via IANS)


Dubai’s status as one of the world’s busiest aviation hubs faced fresh turbulence on Monday after flights were briefly suspended at Dubai International Airport (DXB) following a drone-related incident near the airport.

Authorities said the move was a precaution to ensure passenger and staff safety. The Dubai Media Office confirmed that emergency teams responded after a drone struck near the airport, sparking a fire in the vicinity. Civil Defence contained the blaze, and no injuries were reported.

The incident comes at a time when global airlines are already scaling back operations to Dubai and other Gulf destinations amid security concerns tied to the ongoing conflict involving the United States, Israel, and Iran.

Insurance shock and airspace fears drive airline suspensions

Several international carriers have temporarily suspended services to Dubai and neighbouring cities, citing concerns over airspace safety and sharply rising insurance costs.

British Airways has cancelled flights to Dubai, Abu Dhabi, Amman, Bahrain, Doha and Tel Aviv. Routes to Abu Dhabi are expected to remain suspended for a longer period. The Lufthansa Group – including Lufthansa, Austrian Airlines, Swiss, and Brussels Airlines – has halted services to Dubai and Abu Dhabi until at least mid-March, with further reviews planned.

Other airlines have also pulled back. KLM has cancelled Dubai flights until March 28, Cathay Pacific until March 31, and Finnair until March 29. Singapore Airlines has paused services until at least mid-March.

Industry officials say the decisions are closely tied to war-risk insurance premiums, which have surged sharply (300-1,000%) for aircraft flying through Gulf airspace. When premiums climb steeply, airline risk committees reassess whether operating those routes remains viable.

The drone-related fire reported near Dubai International Airport on Monday, though quickly contained, is likely to reinforce those concerns.

A global hub under pressure

Dubai International Airport handled more than 95 million passengers in 2025, connecting travellers to over 260 destinations across six continents. The airport has long served as a key transit point linking Europe, Asia, Africa and the Americas.

For now, however, the network is relying largely on its home carriers. Emirates and Etihad continue to operate services and are gradually restoring schedules, but the temporary withdrawal of several international airlines has reduced the volume of connecting traffic that normally flows through the hub.

In global aviation, hubs thrive on international airline networks feeding passengers from multiple regions. When those connections slow or stop, even briefly, the ripple effects can be felt across tourism, transit, travel and airport operations.

Conflict continues to shadow regional aviation

The aviation disruptions come against the backdrop of rising tensions in the Middle East.

Earlier, US President Donald Trump said Iran’s military capabilities had been heavily damaged by American strikes but stopped short of declaring the conflict over.

“I think I’d just say they’re decimated,” Trump told reporters aboard Air Force One. “If we left right now, it would take them years to rebuild.”

He also said the United States retained the capability to strike additional Iranian targets if necessary.

For airlines operating in the region, however, the immediate concern remains safety and operational risk. Many carriers say services will resume only once conditions in regional airspace stabilise and insurance costs return to manageable levels.