Air New Zealand suspends its FY26 forecast due to rising jet fuel prices in the Middle East

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• Nigerian Airlines threaten to stop flights due to rising jet fuel prices

  Nigerian Airlines will cease all flight operations on April 20 unless the crippling jet fuel prices are brought down. They accused the country's fuel marketers for artificially inflating them. Airline Operators of Nigeria (an industry group composed of around 12 mainly domestic carriers) complained to the Major Energies Marketers Association of Nigeria in a letter dated April 14 that jet fuel had increased by approximately 270% since February. AON's letter, seen by us, called the increase in jet fuel prices in Africa's largest nation "astronomical" and "artificial", saying that it was far greater than global crude oil price increases. The letter stated that "currently, airline revenues do not cover the cost of fuel." As a result of the 'Iran war', rising jet fuel prices have thrown global aviation into turmoil, forcing airlines around the world to increase fares, curtail growth plans, and rethink forecasts. According to the African Airlines Association, African airlines are especially 'vulnerable', since jet fuel accounts for 30% to 40% of their costs of operation, while global averages range from 20% to 25%. MEMAN, in response to AON, disputed the figures of the airlines, saying that the quoted price is more than 40% higher than a "survey-based average" market. They also added that jet fuel distribution requires specialised equipment, and that it's more expensive. AON stated that raising ticket costs to'reflect the fuel cost airlines are facing in Nigeria, could reduce passenger numbers. The Nigerian aviation sector used about 2.1 million litres per day of?jet fuel last month, according to data from the country’s petroleum products regulator. The data showed that the only domestic jet fuel manufacturer in Nigeria, Dangote Petroleum Refinery, did not make any deliveries to the domestic market during March. Data from the?tanker tracking firm Kpler revealed that Nigeria's clean petroleum exports - gasoline and diesel, as well as kerosene, jet fuel, and kerosene - had more than doubled in March. Dangote didn't immediately respond to our request for comment. (Reporting and editing by Joe Bavier; Isaac Anyaogu)

• Nigerian Airlines threaten to stop flights due to rising jet fuel prices

  Nigerian airlines will cease all flights on April 20 unless the crippling jet fuel price, which they accuse the country's "fuel marketers" of artificially increasing, is reduced. Airline Operators of Nigeria (an industry group consisting of around 12 mainly domestic carriers) complained to the Major Energies Marketers Association of Nigeria in a letter dated April 14 that jet fuel had increased by approximately 270% since February. The price of oil and fuel has risen since the start of the Iran War, because the conflict is preventing shipping through the Strait of Hormuz. In a letter to AON, the company called the increase in jet fuel prices in Africa's largest nation "astronomical" and "artificial," and said that it was far higher than global crude oil price. It said that "currently, airline revenues alone are not sufficient to cover the cost for fuel." MEMAN did not respond immediately to a comment request. The global aviation industry has been thrown into chaos by the soaring prices of jet fuel. Airlines have had to increase fares, reduce growth plans, and rethink their forecasts. AON stated that increasing ticket prices in Nigeria to reflect fuel costs could result in a drop in passenger numbers. A shutdown of airline operations would also have wider repercussions on banks, jobs, and insecurity. According to the African Airlines Association, jet fuel accounts for 30 to 40% of African airlines’?operating expenses, compared to a global average between 20 and 25%. This makes them especially vulnerable to price increases. The Nigerian aviation sector used about 2.1 million litres per day of jet fuel last month, according to data provided by the country's petroleum product regulator. The data shows that the Dangote Petroleum Refinery, Nigeria's only domestic jet fuel producer, did not make any deliveries to the domestic market in March. Data from the tanker-tracking firm Kpler revealed that Nigerian exports of clean products such as gasoline, diesel, jet fuel and kerosene more than doubled month-on-month during March. Dangote didn't immediately respond to our request for comment. (Reporting and editing by Joe Bavier; Isaac Anyaogu)

• El Al, Israel's national airline, to expand Boeing deal by buying six additional 787s

  El 'Al Israel Airlines announced on Thursday that it would exercise its option to 'buy six additional 787-9 Dreamliner planes from Boeing. The airline cited a long-term strategy for increasing capacity and improving profitability. Israel's flag airline?also announced that it would expand?its agreement with Boeing, including an?option to buy up to six additional 787 aircraft. El Al currently has 17 787 aircraft in its fleet. The company expects to have 28 aircraft by the end of the decade, and up to 34 in the future. El Al signed an $1.25 billion contract with Boeing in 2016 for a 'first order' of 15 787 aircraft, with a?option for another 13.

• Investors look at possible Iran War Deal as they mix up the Gulf bourses

  Investors weighed the growing optimism about a possible agreement to end the 'Iran war', backed by increasing U.S. sanctions on Tehran ahead of future talks. U.S. president Donald 'Trump' said that the war he launched with Israel in late February is nearly over. This was despite the fact that the shipping blockade announced by him had come into effect, and the traffic through the Strait of Hormuz was still far below normal. Washington warned that it may impose secondary sanctions against buyers of Iranian crude oil in advance of future negotiations, only weeks after easing some Iran energy sanctions. After negotiations on Sunday failed to produce a breakthrough, U.S. officials and Iranian officials are considering returning to Pakistan this weekend for more talks. Pakistan's Army Chief arrived in Tehran on Wednesday to help prevent a resurgence of the conflict. Dubai's main stock index rose 1.4%. This was largely due to a 2.1% gain in Emaar Properties, the blue-chip developer. Budget airline Air 'Arabia reversed its early losses and traded 1.2% higher. The index in Abu Dhabi increased by 0.3%. Saudi Arabia's benchmark stock index dropped 0.2%. Saudi National Bank, the country's largest lender in terms of assets, lost 2.1% and oil giant Saudi Aramco fell by 0.3%. Brent crude futures were barely changed at $94.67 a barrel on scepticism about the U.S. - Iran peace talks?ending the disruption of the traffic through the Strait of Hormuz. Separately the $925 billion sovereign fund of the Kingdom will channel its investment into the 'domestic' economy by focusing on six priorities in a five-year plan. It is stepping up efforts to reduce the dependence of the kingdom on oil. The Qatari Index eased by 0.1% during a turbulent session. Industries Qatar, a petrochemical manufacturer, fell 0.7%. Qatar, the world's second largest LNG exporter, may extend the force majeure period on gas supply beyond mid-June. Edison stated that the Italian importer expects the lost volumes to be replaced by U.S. LNG instead of Russian?gas. QatarEnergy canceled 10 cargoes from Edison between mid-April and mid-June due to the disruption of supplies. The CEO of QatarEnergy said that Iran's attack on last month knocked down 17% the LNG export capacity of QatarEnergy. (Reporting and editing by Joe Bavier in Bengaluru, Ateeq Sharif in Bengaluru)

• EU developing jet fuel plan in response to Iran crisis that threatens air travel

  Officials said that the European Union was drafting plans in order to combat a possible shortage of jet fuel and maximize refinery production. As a result, European airlines have warned that jet fuel shortages could occur within weeks. This will disrupt travel ahead of summer. Europe imports more jet fuel than any other fuel, 75% of which comes from the Middle East. The European Commission plans to introduce EU-wide mapping for refining capacities of oil products from next month. It will also introduce measures "to make sure that existing refining capability is fully utilized and maintained", according to a draft proposal. Officials familiar with the proposals say that the EU is also developing measures to target jet fuel supplies, but they are still under development. The Commission declined to comment on these draft plans that are scheduled to be released on April 22, 2019. Since the blockade of the Strait?Hormuz, jet fuel prices have skyrocketed. European airlines warn of increased costs, cancellations and groundings of planes in the event that the war doesn't end soon. U.S. president Donald Trump stated in remarks aired Wednesday that the war against Iran could be over soon. He told the world to keep an eye out for "an amazing two days" while U.S. troops imposing a naval blockade were preventing vessels from leaving Iranian ports. SHORTAGES COULD HIT THE SUMMER HOLIDAY SEASON Airlines prepare for a possible supply crunch. The International Energy Agency predicts jet fuel shortages in June if only half of the Middle East's supplies can be replaced. Analysts said that increased imports from Africa or the U.S. will not be enough to make up the difference. Fuel handling consortiums, which feed airports, do not always maintain long-term stock, and most airports don't keep large amounts of fuel on hand. Some airports warned of shortages in three weeks' time if fuel shipments through the Strait of Hormuz remain restricted. Refining capacity in Europe has decreased over the past few years as domestic oil production has fallen and governments have sought cleaner energy sources. This month, the IEA stated that'many European refineries are already operating at their maximum capacity in jet fuel production. "Our (jet-fuel) suppliers have changed their forecasting windows and are no longer willing to provide an outlook for a time period that exceeds one month," Lufthansa CTO Grazia Vittadini said in Frankfurt, on Wednesday. Heathrow airport in the UK said the effects of the war have not yet affected its operations. However, it is monitoring the situation. ADP, the owner of Paris Charles de Gaulle airport, did not reply to a comment request. Britain is not part of the 27-member bloc and therefore, it would be unlikely that any proposed EU rules will affect Britain. JET FUEL STOCK VARIATIONS IN EUROPE Jet Fuel supplies are very uneven throughout Europe. Spain is a net jet fuel exporter with eight refineries, and imports cover over 60% of British demand. European airlines have requested that the EU improve its monitoring of jet fuel supply and consider joint purchases of kerosene. IEA data show that the OECD Europe region (which includes EU countries and others such as Britain and Norway) imports over 30% of its jet fuel. Most of it goes through the Strait. As a buffer to supply shocks, the EU requires that its members maintain 90-day oil emergency reserves. The EU does not have a requirement for jet fuel but countries can include it as well as other oil products in their emergency stock.

• Bloomberg News reports that Spirit Airlines is at risk of liquidation due to fuel costs.

  Bloomberg News reported that Spirit Aviation Holdings, the parent company of Spirit Airlines, was 'at risk of liquidation due to rising jet fuel prices caused by the Middle East war. This could put further pressure on the finances. Spirit is still in talks with its creditors and a decision could be made as soon as this week. However, the situation remains fluid, according to the report, which cited people with knowledge of the matter. Spirit Airlines declined ?a request for comment. The news comes as the low-cost carrier continues to restructure its business in order to cut costs and stabilize its finances, after twice declaring bankruptcy. The company filed for bankruptcy protection for the second consecutive time in August 2025, with 214 aircraft. The Florida-based carrier emerged successfully from its first bankruptcy in March last year. Spirit Airlines announced last month that it would?shrink the fleet to about one-third its size before bankruptcy. The global aviation industry has been thrown into turmoil by the rising jet fuel costs. Airlines have had to raise their fares and re-evaluate their financial forecasts. Reporting by Heera hari in Bengaluru, editing by Sonia Cheema

• US-sanctioned supertankers enter Gulf despite blockade

  Shipping data revealed that a second U.S. sanctioned supertanker entered the Gulf through the 'Strait of Hormuz', despite the U.S. ban on visiting Iranian ports. The U.S. president Donald Trump announced the ban on Sunday, after the weekend talks between the U.S. government and Iran in Islamabad failed to produce a result. U.S. Central Command stated on X, that since Monday's start of the blockade, 10 ships had been turned around. Iran's Fars News Agency reported on Wednesday that despite the blockade, an Iranian supertanker under U.S. sanction crossed the strait to Iran's Imam Khomeini Port despite the sanctions. Fars did neither identify the tanker nor provide any further details about its?journey. Data from LSEG & Kpler show that the empty Very Large Crude Carrier RHN entered into the Gulf on Tuesday. The exact destination of the VLCC (which is capable of carrying up to 2 million barrels) is not yet known. The 'tanker,'s entry into Gulf?comes a few days after the VLCC Alicia (sanctioned by the United States) passed through the Strait of Hormuz. Kpler data indicated that the Alicia was heading for Iraq. Kpler data shows that both tankers are known to have carried Iranian oil over the last few years. The U.S. sanctioned tanker Rich Starry returned to the Gulf of Mexico on Wednesday, just a day after leaving. In an apparent attempt to gain leverage before further negotiations, the U.S. warned that it may add secondary sanctions against buyers of Iranian crude oil. This warning comes just weeks after Washington relaxed some Iran energy sanctions. Iran may consider allowing ships to pass through the Omani side of Strait of Hormuz unassisted as part of its proposals in the negotiations with the U.S. if a deal can be reached to avoid a new conflict. Analysts predict that the U.S. ban on Iranian crude exports will reduce its production. However, Iran could maintain its current production - at 3.5 million barrels a day (bpd), for weeks by storing oil inside tanks. Kpler data shows that Iran exported 1,84 million barrels per day of crude oil in March, and has shipped 1,71 million so far in April. This compares to an average of 1.68 millions barrels per day in 2025.

• Gulf crisis affects Australian and New Zealand companies, from airlines to banks

  The U.S. and Israel war on Iran is causing financial strain on Australian and New Zealand companies, with higher fuel prices increasing inflation, reducing consumer confidence and affecting corporate earnings. Two of Australia's largest companies, Qantas Airways and Westpac?Banking Corporation, warned Tuesday that their earnings may be affected by the soaring price of fuel and by consumers who are struggling with high prices and borrowing rates. Below are some of the Australian and New Zealand companies that have flagged an impact on the Middle East conflict. Air New Zealand New Zealand's Flag carrier announced a price increase in March after suspending its earnings forecast for the full year. The airline announced on April 7 that it would cut flights by 4% and 1% in May and June. a2 Milk New Zealand's A2 Milk has cut its profit forecast for fiscal 2026 as higher freight costs and temporary supply chain interruptions have affected the availability of their China-label infant formula product in the country's biggest market. Cleanaway Waste Management: The company's full-year earnings were cut by A$20m ($14.17m) due to higher costs, reduced activity and differences in timing of cost recovery. Fonterra New Zealand's largest dairy producer stated that the conflict is impacting their supply chain and could increase its inventory levels and cost in the second half year while also contributing volatility in global commodities prices. Orora: Orora, a packaging company, has lowered its earnings forecasts for Saverglass' French unit and canceled?its stock buyback program. The company cited the impact of war. Due to the closure of shipping routes, the company also stopped bottle production at the glass production facility in Ras al Khaimah (the United Arab Emirates). Qantas: Qantas Airways is Australia's national carrier. It has raised its fuel costs outlook for the second-half of the year up to A$800m and announced that it will not be starting its planned A$150m share buyback, citing the sharply higher jet fuel prices. Qantas has raised fares to offset the rising cost of its flights and shifted them towards stronger routes, such as Paris or Rome, where demand is still strong. They have also reduced their domestic capacity in the second quarter by approximately 5 percentage points. Virgin Australia Virgin Australia expects fuel costs to increase by around A$30 to A$40 Million ($21.39 to $28.52 millions) in the second half fiscal 2026. In mid-March, the airlines announced that they were adjusting their fares due to the rising costs in the aviation industry. Westpac: Westpac, Australia's no. The no.2 bank in Australia by assets said that energy market shocks were beginning to show up as profit pressures during the first half. Westpac's net margin for its Treasury and Markets division has been weakened due to interest rate volatility related to the conflict. A weaker outlook is already leading to higher credit provisioning. Westpac's provisioning to cover potential bad debt has reached its highest level since the COVID-19 pandemic. Auckland International Airport Auckland International Airport in New Zealand said that flights between Auckland and the Middle East had been disrupted. According to the airport operator, in March there was an 81% decrease in passenger numbers on Middle Eastern routes and a 73% drop in seat capacity compared to a year earlier. Fletcher Building Fletcher Building in New Zealand said that it is 'indirectly exposed to the Middle East conflict through supply chains, freight lines, energy costs and the wider economic impact across Australasia. Construction materials manufacturer expects to increase prices in all divisions as a result of passing on costs to its customers. The company will increase prices by up to 36 percent in plastics, where it says they are most vulnerable. Other divisions can expect a 1%-5% price increase.

• Fuel costs are increasing, so airlines are reducing their prices and cutting back on their outlook.

  The U.S. and Israeli war against Iran, which has pushed up jet fuel prices, has shook the aviation industry around the world. Airlines have been forced to increase fares and re-evaluate their financial forecasts. In recent weeks, jet fuel prices have increased from $85-$90 per barrel up to $150-$200 per barrel. This is a major financial blow to an industry that relies on fuel for a quarter of its operating costs. Here is an alphabetical list of the ways airlines are responding to this issue: AEGEAN AIRLINES The Greek airline anticipates that the suspension of Middle East flights, as well as a spike in fuel costs, will have "a significant impact" on their first-quarter earnings. AIRASIA X The executives of the?Malaysian airlines said that the company has cut 10% of its flights in the group. Fuel prices have also been increased by about 20%. AIR FRANCE-KLM The airline group announced that it would increase the price of long-haul tickets to offset rising fuel costs. Cabin fares will rise by 50 euros ($58). AIR INDIA The Indian flag carrier announced it would change its fuel surcharge system from a flat-rate domestic surcharge grid to one based on distance. The airline said that surcharges for international routes do not compensate the astronomical rise in jet fuel prices. AIR NEW ZEALAND On April 7, the airline announced that it would cut flights in May and June, and raise fares. It was one of the first airlines to announce a large increase in ticket prices after the conflict began. The airline also suspended its earnings forecast for the full year due to volatility in the fuel markets. AKASA AIR Akasa Airlines, based in India, announced that it would be introducing fuel surcharges ranging from 199 to 1,300 Indian Rupees ($2 - $14) for domestic and international flights. ALASKA AIR The U.S. carrier said that it would raise fees by $5 for the first bag and $10 for the second for flights in North America, including Hawaiian Airlines. The third checked bag was raised from $50 to 200 dollars. AMERICAN AIRLINES The U.S. carrier announced that it would increase the fees for checked baggage by $10 for each of the first two bags, and $150 for the third bag, on both domestic and short-haul flights. The airline has also reduced certain benefits for economy travelers. The fuel price increase was expected to cause a $400-million increase in the first quarter expenses. CATHAY PACIFIC Hong Kong Airlines said that it will cancel about 2% of its scheduled passenger flight between mid-May and the end of June. Meanwhile, HK Express, its budget airline, is cutting around 6%. The carrier had previously announced that it would increase its fuel surcharge across all routes by 34% from April 1, and to review the charges every two weeks. CEBU AIR The Philippines-based carrier said that the sharp increase in fuel prices is a major concern. It will continue to review pricing and network strategies for a reduction of?the impact. CHINA EASTERN EXPRESS AIRLINES Air China said that it would increase fuel surcharges on domestic flights starting April 5. Flights of less than 800km will be charged a surcharge of 60 yuan, and flights above 800km will be charged a surcharge 120 yuan. DELTA AIR LINES Delta announced that it would reduce capacity by 3.5 percentage points compared to its original plan, and increase fees for checked baggage in order to offset the rising costs of jet fuel. The price increase will be $10 on first and second bags and $50 on third bags. The U.S. carrier pulled all planned growth in capacity for the current quarter, and forecast profits below Wall Street expectations. Delta CEO said that it would not update its full-year forecast due to uncertainty about how long fuel prices would rise. EASYJET EasyJet CEO Kentonjarvis warned that European consumers can expect to pay higher prices for tickets towards the end summer when fuel hedges expire. FRONTIER AÉRIENS Fuel prices have increased dramatically since the airline's forecast. GREATER BAY Airlines The Hong Kong-based firm said that it will increase fuel surcharges for most routes starting April 1, but keep them the same on routes to mainland China and Japan. The carrier has announced that its surcharge on flights between Hong Kong and the Philippines will double. HONG KONG Airlines The airline announced that it would 'raise fuel surcharges up to 35% starting March 12th, with the biggest increase occurring on flights between Hong Kong, Bangladesh, and Nepal where the charges will rise from HK$284 to HK$384 (US$49). British Airways' owner IAG stated on March 10, that it does not intend to increase ticket price immediately as it has hedged a large amount of fuel in the short to medium term. INDIGO India's largest airline announced that it will begin charging fuel fees on both domestic and international flights as of March 14. The charges include 900 rupees per flight to the Middle East, and 2,300 rupees per flight to Europe. Sources say that the company is lobbying for the Indian government's reduction of fuel taxes. JETBLUE AERWAYS Low-cost airline based in the United States has announced that it will increase fees for optional services, such as checked luggage, due to "increasing operating costs". The airline said that baggage prices would rise either by $4 or $9. Sources with knowledge on the subject have confirmed that KOREAN will be in emergency mode as of April due to rising oil costs. The airline will implement phased responses based on the oil price levels and increase company-wide efficiency to offset rising fuel costs. PAKISTAN INTERNATIONAL FLIGHTS Fuel surcharges are cited as the reason for raising domestic flight prices by $20, and international flights by up to $100. QANTAS AIRWAYS Qantas, Australia's largest airline, said it had delayed its planned A$150-million ($106-million) buyback. It also increased the estimated fuel bill in 2026 for the second half to A$3.1-A$3.3 billion from an earlier A$2.5 billion estimate. Scandinavian Airlines announced that it would cancel 1,00 flights in April due to high jet fuel and oil prices. In March, the airline had cancelled "couple hundred" of flights. SAS, which has already raised flight prices, stated that the surge in fuel costs would be a major blow to the aviation sector, even if they tried to absorb them. SPRING AIRLINES Budget Chinese airline announced that it will increase fuel surcharges for domestic flights starting April 5. Details to be revealed later. SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWAST AIRLINES The American carrier announced that it would increase the fees for checked bags by $10 each for the first two bags. This will bring the cost to $45 and $55 respectively for the first bag. The Portuguese airline claimed that its price increases would partially offset the impact of fuel prices changes on its revenues. THAI AIRWAYS The Thailand-based airline?said that it would increase fares between 10% and 15% in order to combat rising fuel costs. TURKISH AIRLINES LUFTHANSA SunExpress is a joint venture of Turkish Airlines and Lufthansa. It announced that it would be imposing a temporary fuel charge of 10 euros per person on routes between Turkey, Europe and the Middle East, starting May 1. The fuel surcharge will be applied to all bookings made after April 1, for departures after May 1. Turkish Airlines announced on April 10, that it would not be distributing any dividends from its 2025 net profits, instead opting to keep earnings in order to conserve cash. T'WAY AIR As part of its efforts to combat the effects of the Middle East war, the South Korean low cost carrier announced on April 13 that it will furlough cabin crew in May and/or June without pay. UNITED AIRLINES Scott Kirby, CEO of the U.S. carrier, said that the airline will cut unprofitable flights in the next two quarters to prepare for the oil price remaining above $100 by the end 2027. Andrew Nocella, United's Chief Commercial Officer, said that the company was able to increase fares in response to a rapid rise in jet fuel and oil prices. In an email, the carrier said that it would also be increasing the first and second checked bags fees by $10 to customers traveling in Latin America, Mexico, Canada, and the United States. VIETJET Vietnamese budget airline?said that it had reduced flight frequencies on certain routes due to possible fuel shortages. VIETNAM Airlines Vietnam's aviation authority announced that the carrier will cancel 23 flights per day on domestic routes from April after it requested assistance from the government to remove an environment tax on jet fuel. VIRGIN ATLANTIC Corneel Kster, the CEO of the airline, told The Financial Times that despite adding fuel surcharges on fares this year it will struggle to achieve profitability. VIRGIN AUSTRALIA Virgin Australia has said that it anticipates an increase of jet fuel costs of between A$30 and A$40million for the second half this fiscal year. It also expects a 1% decrease in capacity during the fourth quarter. The airline had previously announced that it would adjust fares in order to reflect the rising costs. WESTJET Canadian Press reported that the airline would add a fuel surcharge of C$60 ($43), and will combine some flights to reduce costs.

• Spain and Portugal hotel and flight bookings are up as tourists choose to avoid the Middle East

  Industry data shows that Spain and Portugal have seen a rise in late-spring and summer hotel and flight bookings, as millions of travellers flee war-affected hubs and destinations in the Middle East. According to the digital travel platform Sojern, summer flight bookings, including transit flights, to Spain soared by 32% on an annual basis as of April 2. Hotel searches also rose by 28%. Portugal saw a 21% increase in flight bookings and a 16% rise in hotel searches. Travel data firm Mabrian reported a decline in Middle Eastern destinations and an increase for the southern Mediterranean last month. Spain, which rivals France to be the most visited country in the world, was the biggest beneficiary of this shift. The eastern Mediterranean has seen a surge of cancellations. This includes European Union member Cyprus, where a British air base was hit by a drone on March 2. It highlights the wider fallout of the Iran war. Spain's Exceltur industry group has revised its projections upwards since the conflict began on February 28. This is a modest improvement, but still significant at a moment when inflation and geopolitical concerns are affecting consumer spending. Summer holidays are booked months in advance. "Summer holidays are planned months in advance. Sylvia Weiler is Sojern's global destination manager. She added, "Travellers are adapting, rather than retreating." Up to 181 millions tourists visit the Middle East & eastern Mediterranean every year. Spain received a record number of tourists last year. Exceltur forecast last week that Spain's tourism industry would grow in real terms by 2.5% this year, to 227 billion euro ($267 billion). This is up from the previous projection of 2.4% and the 2.1% growth last year. The industry estimates that diverted tourists could add an extra 4.2 billion Euros to the total for this year. This sector is expected to grow faster than the overall economic growth of 2.3%, according to the forecast. Cehat, the main Spanish hotel association, expects summer room occupancy rates to rise up to 3%. A CAUTIOUS VIEW IS NEEDED IN LIGHT OF THE RISKS "Tourism is choosing to travel further away from conflict zones in the Mediterranean, like the Canary Islands for summer family holidays," said Cehat president Jorge Marichal. He warned that this could lead to a decrease in overall travel. According to Turespana (the official tourism agency), airlines are increasing capacity. In April, there were nearly?6% fewer seats than one year earlier. The biggest increases occurred on flights coming from the United States, followed by those flying out of Britain. Exceltur warned that higher jet fuel prices and more disruptions to long-haul travelers at Middle Eastern transit hubs may limit the gains. Cehat's Marichal said it more bluntly: "It all depends on what happens at the Strait of Hormuz because all of these forecasts may be thrown out the window." The Iran war has all but closed the strait through which one-fifth or more of the world's oil and gas is transported.

• Dubai's iconic Burj Al Arab Hotel will close for 18 months to undergo a refurb amid a tourism decline

  A staff member confirmed that the luxury hotel Burj al Arab in Dubai would be closing for a major 18-month renovation. This is the first time it has closed since opening 'in 1999. It also comes at a period when the tourism industry in the region was slowing down due to the U.S./Israeli war against Iran. In a Tuesday statement, the hotel owner Jumeirah stated that work would be done in 18-month phases under the supervision of interior architect Tristan Auer. The statement did not mention that the hotel would be closed for the renovation. The hotel employee said that guests who booked during the closure will be offered a 'alternative stay in nearby hotels'. The person stated that the period of closure could change. The person said that the period of closure is subject to change. Employee said that the "long-awaited work" is not linked to?the March incident. In a statement, Jumeirah in the United Arab Emirates did not link the project with the war. It is noteworthy that the conflict has affected travel to Dubai. Flight disruptions have been reported in the UAE, and luxury groups are warning about pressure on profits due to a weakening visitor demand. (Reporting and editing by Milla Nissi Prussak, Keith Weir and Mireia merino)

• Gulf stock exchanges rise on optimism about US-Iran Peace Talks

  Investors are encouraged by optimism over renewed U.S. - Iran?peace negotiations. The United States announced on Wednesday that it had completely halted all sea traffic to and from Iran despite President Donald Trump's suggestion that negotiations to end the conflict could resume this week. Trump stated that U.S. officials and Iranian officials could meet again within the next couple of days in Pakistan, while Vice President JDVance expressed his optimism about the current state of the talks, even though the discussions last weekend ended without a breakthrough. Both officials in Pakistan and Iran have also said that the talks could be restarted soon. Dubai's main stock index rose 1.7%. This was boosted by the 1.6% increase in Emaar Properties, a blue-chip developer. Air Arabia, a budget airline, has risen by 3.4%. Aldar Properties grew 1% in Abu Dhabi. Saudi Arabian?Mining Company traded 1.7% higher, while the benchmark index rose 0.4%. Saudi Aramco, the oil giant, also rose 0.2%. Brent crude futures rose 1% to $95.77 per barrel after falling nearly 5% over night to below $100. Separately the International Monetary Fund said on Tuesday that the growth in the Middle East will be sharply slowed this year due to the fallout of the Iran War. The?Qatari Index rose 0.4% led by a rise of 0.7% in the Gulf's largest lender, Qatar?National Bank. Majed al-Ansari, a spokesperson for the Gulf state, denied that there were 'any talks' with Iran about?payments aimed at halting attacks. Instead, the Gulf state said its demands had been conveyed to Pakistan and America, instead.