Middle East Air Cargo Routes Disrupted as Cathay Pacific, Cargolux Halt Flights

Cathay Pacific Airlines and Cargolux have postponed or suspended resumption of cargo and passenger flights to key Middle East hubs including Dubai, Riyadh, and Kuwait in response to renewed large-scale hostilities between the United States and Iran. This decision removes significant air capacity from critical trade lanes connecting Asia, Europe, and the Persian Gulf region, forcing shippers to seek alternative routing and face potential cost increases and delivery delays. The cargo impact extends beyond scheduled freighter operations.

Cathay Pacific's passenger aircraft carry substantial cargo loads in lower holds, and the airline ranks as the ninth-largest global air cargo carrier by scheduled traffic. With daily Hong Kong-Dubai service delayed from September 1 to October 25 and Riyadh service pushed from early September to October 26, shippers face a multi-week capacity shortage on routes typically used for time-sensitive imports and exports. Historically, similar escalations have temporarily reduced global air capacity by over 12%, though capacity has recovered to roughly 4% year-over-year growth as conditions stabilized earlier in 2024.

Airlines now face longer flight paths around danger zones, increasing fuel costs and transit times. Supply chain teams should anticipate higher air freight rates, extended lead times to and from the Gulf, and increased pressure on alternative carriers, while monitoring geopolitical developments for possible service restoration timelines.