NIFTY23,3670.21%
SENSEX74,2430.16%
BANKNIFTY54,4960.35%
NIFTY IT29,0100.99%
PHARMA24,2480.29%
AUTO26,1660.08%
FMCG48,3020.18%
METAL13,2221.60%
REALTY768.900.56%
ENERGY40,3460.25%
NIFTY23,3670.21%
SENSEX74,2430.16%
BANKNIFTY54,4960.35%
NIFTY IT29,0100.99%
PHARMA24,2480.29%
AUTO26,1660.08%
FMCG48,3020.18%
METAL13,2221.60%
REALTY768.900.56%
ENERGY40,3460.25%

Gulf Air Expects Travel Demand to Recover in Coming Weeks

Bahrain's national carrier, Gulf Air, is predicting a recovery in travel demand through its hub in the coming weeks. The airline's operations were disrupted due to the Iran war, which forced it to halt flights for 40 days and set up operations in Saudi Arabia. Gulf Air's Chief Executive Officer, Martin Gauss, noted that for July, the airline is seeing higher forward bookings week on week compared to the previous year.

Currently, demand into the winter months is at normal levels. However, load factors are down 3% compared with last year. The airline had to temporarily suspend flights from the kingdom and relocate planes due to the conflict. Despite the challenges, Gulf Air has not deliberately reduced prices to attract customers. Instead, fares have increased due to higher fuel prices, which are determined by the market.

Airlines across the Persian Gulf are starting to recover their capacity as airspace restrictions have been lifted. Neighboring Emirates, the world's largest carrier, is operating at around 75% of its pre-war capacity. Gulf Air is working to revive the loss-making airline and introduce a more premium product under the leadership of CEO Martin Gauss, who joined the carrier in November 2023, just before the war started.

Read also: Elon Musk to Attend Exclusive ASML Tech Forum for Discussion on Terafab Development

AirlinePre-War CapacityCurrent Capacity
Emirates100%75%
Gulf Air--

Note: Gulf Air's current capacity is not explicitly stated in the article, so it is not included in the table.

Investor Takeaway

Investors should monitor Gulf Air's recovery in travel demand for the summer period.

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