HONG KONG: Asian airlines are seeing a surge in demand for travel to Europe as disruptions at Middle Eastern hubs force passengers to reroute, giving carriers in the region an unexpected boost in traffic and pricing power.

Major airlines, including Cathay Pacific, Singapore Airlines, Korean Air, and Qantas, have reported strong performance on European routes in recent weeks, even as they contend with sharply rising jet fuel costs linked to the Iran conflict.

The shift in travel patterns comes as passengers increasingly avoid transit through Gulf hubs, which previously handled a significant share of traffic between Asia and Europe.

"We have ... mounted additional flights and capacity to Europe in March and April to cater for an upsurge in market demand as passengers prioritized alternative routings," said Cathay Pacific Chief Customer and Commercial Officer Lavinia Lau.

She added that demand is expected to remain strong through April, driven by Easter travel and a rise in long-haul bookings transiting through Hong Kong.

Singapore Airlines also reported a sharp increase in demand, with seat occupancy on its European routes rising to 93.5 percent in March, up from 79.7 percent a year earlier. The airline attributed the surge partly to spillover traffic as capacity through Middle Eastern hubs declined.

Before the conflict, Gulf carriers including Emirates, Qatar Airways, and Etihad accounted for about one-third of passenger traffic between Europe and Asia, according to aviation data firm Cirium. They also carried more than half of the passengers traveling from Europe to Australia, New Zealand, and Pacific destinations.

While Gulf airlines have begun restoring services, reaching at least 60 percent of pre-conflict flight levels, they continue to face challenges.

Australia has advised its citizens against traveling to or transiting through the Gulf, which affects travel insurance coverage. As a result, passengers are increasingly willing to pay higher fares for routes that avoid the region.

Data from Google Travel shows a significant price gap. For Sydney–London return tickets, flights via Abu Dhabi remain the cheapest option at A$1,861 (US$1,333.59), while alternatives that avoid the Middle East cost substantially more, with one-stop routes via San Francisco or Bangkok priced at A$3,144 and A$3,901, respectively.

Analysts say the shift could have lasting effects on airline competition. "Tight pricing and share gains on Asia-Europe routes could persist for 6 to 12 months even after the end of the war, given forward booking lags and traveler risk aversion," Bank of America analysts said in a recent note.

Korean Air reported a strong first-quarter performance, with operating income rising 47.3 percent to 517 billion won ($349.38 million), partly driven by increased Europe-bound demand. The airline said it expects continued strength in transit traffic as Middle Eastern capacity remains constrained.

Qantas has also adjusted its network, redeploying aircraft from U.S. and domestic routes to expand services to European destinations such as Paris and Rome. "Qantas continues to see strong demand for international travel to Europe as customers seek alternative routes," the airline said.

Data from Airservices Australia showed traffic between Australia and the Middle East dropped 77 percent year-on-year in March as flights were rerouted. "Asian gateways such as Singapore, Kuala Lumpur, Hong Kong, Tokyo, and Seoul are capturing much of this displaced demand and may emerge as alternative hubs and travel destinations," Airservices said.

Analysts say the shift highlights how geopolitical disruptions can rapidly reshape global aviation flows, with Asian carriers now positioned to retain market share gains even after conditions stabilize.