Speaking at the Arabian Travel Market in Dubai, Antonoaldo Neves put it plainly: "In the Middle East, because of competition, it's much harder to pass on prices." He called the region "the most competitive market in the world in terms of aviation." He added that carriers would need fuel to stay high for a longer stretch before ticket prices move, thanks to that fierce rivalry for customers.
Oil spiked after US and Israeli attacks in Iran and stayed above $100 per barrel on Monday, with Washington and Tehran grappling for influence over the Strait of Hormuz. The knock-on effects hit airlines across the Gulf, with Emirates, Qatar Airways and Etihad temporarily cutting back operations and reshaping international networks as demand softened and certain airspace closed.
Etihad is cushioned with roughly 60% fuel hedging locked in through the end of the year. That helps, but analysts still expect airfares to stay higher for longer, which squeezes airline margins and, by extension, their bonds. One place Etihad is not hesitating on price is freight: Neves said cargo customers see increases passed through "automatically."
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The carrier says the current regional conflict is just one of several geopolitical headaches. The Trump administration is tightening who qualifies and raising fees for visas, including H-1B permits that matter to IT and tech staffing, and the US and Canada have been slapping tariffs on each other's goods. As Neves put it, "We see more impact in July and August because the student visas in the US and Canada have changed than because of the conflict, so we need to take a wider perspective." For travelers, that means prices and routes aren't only a fuel story - policy moves can change demand patterns and timings, too.
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