The war in the Middle East – which began last weekend with US-Israeli attacks on Iran, triggering retaliatory strikes from the Islamic republic – has caused the biggest disruption to global air traffic since the Covid-19 pandemic.

“Developments in the Middle East and the associated geopolitical consequences for the global economy increase the medium- and long-term forecast uncertainty,” the group said as it outlined its 2026 outlook.

“Disruptions to supply chains in the Strait of Hormuz are leading to increased volatility in the oil markets,” it said.

However, the group – which operates Eurowings, Austrian, Swiss and Brussels Airlines and has acquired a stake in Italy’s ITA – also said it had also seen a “sharp rise in demand for long-haul flights” since the conflict started, particularly on routes to and from Asia and Africa.

The aviation giant reported its 2025 annual results on Friday, with net income dropping about 3% to €1.34 billion (US$1.55 billion) during a year when the group pushed through a turnaround programme.