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Airline share prices rebound after a resumption of Middle East flights

Airline shares recovered on 'Thursday, as more flights left the Middle East. This provided some respite for carriers who had lost billions in value due to the U.S. and Israeli strikes against Iran earlier in the week.

The government has been scrambling for flights out of the Middle East to accommodate tens and thousands of citizens who have been stranded due to the U.S.-Israeli conflict against Iran. This conflict has caused the closure of most of the airspace in the region because of the threat of missiles striking passenger planes.

Dubai, the busiest airport in the world, handles over 1,000 flights per day. Its closure has disrupted travel and caused ticket prices to soar on popular routes, such as Australia-Europe.

Emirates and Etihad Airways now operate a limited number services?from Dubai and Abu Dhabi via the safe air corridors of the United Arab Emirates, while Qatar Airways flight from Doha remains completely halted.

Flightradar24 reports that as of Thursday morning's early hours, Emirates flights have left Dubai for destinations such as Sydney, Amsterdam and Mumbai. However, the majority of these services remain cancelled.

The Australian government announced that three commercial flights are scheduled to depart from the United Arab Emirates and arrive in Australia on Thursday. This follows the arrival of 200 Australians on a flight by Emirates from Dubai on Wednesday evening, where there were emotional scenes at the arrival gates, as families embraced their returning travellers.

The?U.S. State Department said that a U.S. charter flight brought Americans from the Middle East to the United States, and other flights were being arranged for various locations in the region. State Department announced.

Canada has said that it is working on repatriating stranded Canadians by organizing seats on commercial flights, and hiring charter flights.

Air India announced that it would be flying a Boeing 787 with more capacity on Thursday to bring back passengers who were stranded on the Mumbai-Dubai Delhi route.

ASIAN AIRLINE SHARE REBOUND

After a double-digit drop in recent days, many Asian airline stocks have recovered amid concern over the length of the conflict and the impact on oil prices.

Kenny Ng is a securities analyst at China Everbright Securities International. He said: "I consider this recovery to be short-term and its sustainability will depend on the current situation in the Iranian Conflict."

The New York Times, citing briefed officials, reported that operatives of Iran's Ministry of Intelligence had expressed an openness to U.S. Central Intelligence Agency?to talk about ending the war.

Shares of Hong Kong's Cathay Pacific Airways grew by 4.2%. Qantas Airways jumped more than 1%, and Korean Air Lines rose more than 5.0%.

Air China, China Eastern Airlines, and China Southern Airlines all fell between 1%-?3% on the Hong Kong and Shanghai market, stabilising from steeper drops earlier in the week.

Asian airlines are very sensitive to Iran because of the exposure they have through energy and routes, both in terms of revenue and cost. Gary Ng is a senior economist with Natixis. He said that any news about reducing the length of the war could easily change sentiment.

Airspace is so constrained that airlines have to make reroutes, carry more fuel, or stop for refueling to avoid sudden divergence or long flight paths along safer corridors.

Some expatriates and marooned tourists have tried to escape the Middle East via Saudi Arabia or Oman where the airspace is still open.

(source: Reuters)