Stock Markets June 6, 2026 12:43 PM

Middle Eastern Airlines Advised Against Postponing Jet Purchases Despite Iran War Disruption

IATA regional VP warns that deferring aircraft orders amid higher fuel costs and conflict-related uncertainty would incur long-term costs for carriers

By Marcus Reed
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An IATA regional vice president said Middle Eastern carriers should avoid deferring aircraft orders despite the war in Iran and rising jet fuel prices, citing lengthy manufacturer lead times and the potential long-term cost of postponements. Remarks were made at IATA's annual summit in Rio de Janeiro, and followed damage to a Kuwait airport terminal from an attack that killed one person.

Middle Eastern Airlines Advised Against Postponing Jet Purchases Despite Iran War Disruption
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Key Points

  • IATA regional VP Kamil Al-Awadhi advised Middle Eastern carriers against deferring aircraft orders despite uncertainty and higher jet fuel prices caused by the war in Iran.
  • Al-Awadhi cited long waiting times for Airbus's latest-generation single-aisle planes and the long-term cost of deferrals as reasons carriers should maintain existing procurement plans.
  • An attack at a Kuwaiti airport that killed one person damaged a terminal used by foreign carriers and, according to Al-Awadhi, will likely take at least a year to repair, potentially forcing operational adjustments.

Rio de Janeiro, June 6 - Middle Eastern airlines should not delay placing aircraft orders because of the uncertainty and elevated jet fuel prices linked to the war in Iran, a regional vice president of the International Air Transport Association (IATA) said on Saturday.

Kamil Al-Awadhi, IATA's regional vice president for Africa and the Middle East, told reporters at the association's annual summit in Rio de Janeiro that he does not anticipate the conflict or higher operating costs will prompt carriers in the region to cancel or defer commitments to planemakers.

"Deferrals are not wise because that deferral will cost you," Al-Awadhi said, pointing to extended delivery timelines for new aircraft. He highlighted that airlines in the Middle East are significant purchasers of jets from Boeing and Airbus.

Al-Awadhi noted that waiting lists for Airbus's latest-generation single-aisle models mean it could be years before an operator taking a deferred slot would actually receive aircraft. For that reason, he said carriers are likely to stick with their existing fleet renewal and expansion plans despite the present disruption.

"The plan is to continue where we're going ... even though this is a hiccup," he added.

The comments come as global airlines reduce frequencies, increase fares and raise ancillary fees to help offset rising costs. In the Middle East, some airports have been struck in incidents tied to the broader conflict, adding to operational pressures.

Al-Awadhi also expressed concern about a recent attack at a Kuwaiti airport that killed one person and caused damage to a terminal used by foreign carriers. Based on images and videos sent to him, he said the damage looked extensive and estimated that repairs would take at least a year.

"My personal guess, looking at the damage from the videos and pictures that were sent to me, it's going to take ages," he said.

He questioned whether other carriers would be able to return to operations in Kuwait while that terminal is out of service. To address the gap, he said Kuwait would either need to fast-track a portion of a new terminal's completion or permit foreign airlines to operate from terminals normally reserved for domestic carriers, such as those used by Kuwait Airways.

Al-Awadhi cautioned that resolving the issue will require difficult choices and logistical work. "It will take some tough decisions and logistics to get that sorted," he added.

The IATA official's remarks underscore the trade-offs facing carriers in the region: confront near-term cost pressures and operational risks tied to the conflict, or accept potentially lengthy delays and higher expense by pushing out aircraft deliveries.


Context provided by the speaker: Al-Awadhi delivered these observations on the sidelines of IATA's annual summit in Rio de Janeiro. He framed the advice around the combination of long manufacturer lead times for new-generation single-aisle jets and the acute, though temporary, disruptions tied to the Iran war.

Risks

  • Operational disruption for foreign carriers if the damaged terminal in Kuwait remains unavailable - impacts airport operations, airlines, and passenger connectivity.
  • Higher short-term operating costs for carriers as airlines cut flights and raise fares and fees to offset rising jet fuel prices - impacts airline profitability and passenger demand.

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