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Middle East airline disruption exposes business travel risk for South African companies

Middle East airline disruption exposes business travel risk for South African companies

By Adrian Ephraim

ON Saturday 28 February 2026, airspace over the Middle East effectively shut down for South African travellers. Emirates, Etihad and Qatar Airways, the three carriers that together form the primary aviation corridor linking South Africa to Europe, Asia and beyond, suspended operations almost simultaneously. Thousands of business travellers were left stranded in Dubai, Abu Dhabi and Doha, or marooned at their destinations with no clear path home.

Three weeks later, services have partially resumed, but the situation remains fluid. The episode has exposed how underprepared many South African businesses are when it comes to managed travel risk. Herman Heunes, GM of Corporate Traveller (a division of the Flight Centre Travel Group), unpacks what companies need to know.

The cost of disruption goes beyond cancelled flights

When a major aviation corridor disappears overnight, the ripple effect on pricing is immediate. Supply shrinks while demand holds firm, and fares spike accordingly. But Heunes warns against reducing the cost conversation to simple supply and demand.

โ€œFares are climbing for several reasons. Yes, supply and demand is a factor, but so are rising oil prices, longer flight paths and associated operational costs as airlines avoid restricted airspace, and increased insurance premiums, which are often passed on to travellers.โ€

Alternative hubs, including Addis Ababa, Singapore and various European gateways, filled up rapidly as travellers sought non-Gulf routings. Corporate Travellerโ€™s booking data reflects the shift: Ethiopian Airlines saw a 100% sales spike, Virgin Atlantic 303%, Air China 225%, Singapore Airlines 109% and KLM 114%.

For companies whose employees book travel independently, the implication is significant. They are competing for constrained seats without the priority access, supplier relationships and expertise that a managed travel programme provides.

What travel insurance does and doesnโ€™t cover

War is a universal exclusion across all travel insurance products globally, and South Africa is no exception. Jason Veitch, Business Head for Accident and Health at Santam Travel Insurance (formerly TIC), addressed the issue during an ASATA industry webinar.

โ€œWar exclusions exist because the scale of conflict can affect hundreds of thousands of travellers simultaneously, and no insurance pool can absorb that,โ€ he explained. โ€œBut while war exclusions apply to trip cancellation and curtailment, other benefits including medical remain in place.โ€

That distinction matters more than most corporate travel managers realise. โ€œThe main reason for travel insurance is actually medical, and thatโ€™s what sometimes gets lost in these conversations. We have had policyholders in hospitals in the region being cared for under their travel insurance. Thatโ€™s exactly what a policy is there for.โ€

Heunes adds an important caveat: policies differ substantially in how they define war exclusions, known events and government travel advisories. โ€œUnderstanding what your team is covered for, including medical evacuations and territorial limitations, is critical to managing risk.โ€

Knowing your rights when an airline cancels

If a flight is cancelled before departure, travellers are entitled to an alternative flight or a full refund with no penalties. If a passenger is already mid-journey, the airlineโ€™s responsibility expands: it must rebook, reroute through partner carriers if necessary, and accommodate the traveller until they reach their final destination. If a traveller cancels a booking on a flight that is still operating, standard fare conditions apply.

One reassurance worth noting: fares are locked at the time of booking, so no fuel surcharge increases will be applied to existing trips.

Duty of care: do you know where your people are?

For Heunes, the most fundamental lesson from the crisis is also the most uncomfortable: too many South African companies do not have adequate visibility over where their travelling employees are at any given moment.

Any company operating a travel programme, regardless of size, has an obligation to its staff that includes a clear travel policy, access to pre-trip risk intelligence, the ability to locate travellers rapidly in an emergency, and a documented crisis management plan.

โ€œWhen a crisis hits, visibility is everything,โ€ says Heunes. โ€œA centralised booking system, 24/7 emergency support, strong airline relationships and crisis management plans are all part of a managed travel programme. This is where a travel management company proves its worth.โ€

The Middle East crisis will not be the last event to ground international travel without warning. The question for South African business leaders is whether their travel programmes are built for disruption, or merely for fair-weather conditions.

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