Bloomberg Weekend Tea Break: From Fans to Flight Tickets, War Impact Spreads Globally

Hello everyone, I am Tao Zhang from the Chinese department of Bloomberg News, and welcome to Bloomberg Weekend Tea Break.

The ongoing war in the Middle East is increasingly clarifying its impact on the global economy, financial markets, and people’s lives, as evidenced by several numbers. The risks of inflation and economic slowdown have led to a major market sell-off, with approximately $12 trillion in global stock market value evaporating since March, and the value of global bonds shrinking by about $2.5 trillion. The expectations of interest rate hikes and investors selling gold to raise cash have also led to a sharp drop in spot gold prices. Despite signs of increased negotiation efforts this week stabilizing the financial markets, the path to ending the war remains unclear, with the United States and Iran still at odds over negotiations.

Businesses are also feeling the pain. Some Chinese exporters have started raising prices, with increases seen in products ranging from toys to yoga pants to medical catheters. Japanese petrochemical producers, such as Mitsubishi Chemical Group, have announced production cuts in recent weeks, fearing shortages of raw material naphtha. The impact on the energy sector, which is at the epicenter, is even more direct. According to the International Energy Agency, over 40 energy assets in nine Middle Eastern countries have been severely damaged, which may lead to continued disruptions in global supply chains even after the conflict ends.

The war is not only impacting macro data and market candlesticks but also affecting the daily lives of ordinary people. In Australia, at least 600 gas stations have sounded the alarm for fuel shortages. The president of the Philippines stated that several countries have informed Philippine airlines that they cannot refuel their planes. Cricket fans in Pakistan have been told to stay home and watch matches on television to conserve fuel. My colleague K Oanh Ha will also discuss the impact of oil prices on summer airfares in this column.

There are thousands of news items each week; do you know the answers to these?

1. Why did the United States’ most expensive aircraft carrier, the USS Ford, withdraw from combat with Iran and arrive at the port of Crete this week?

A. Insufficient power B. Carrier aircraft launch failure C. Laundry area caught fire D. Damaged by an attack

2. Which country does Australia primarily import gasoline, diesel, and aviation fuel from?

A. South Korea B. New Zealand C. Saudi Arabia D. Iceland

3. According to a recent ruling by a Los Angeles court, Meta and Google were ordered to pay $6 million to the plaintiffs. What was the specific reason?

A. Privacy leak B. Monopoly C. Infringing content D. Product addiction

Chinatown Post Office

(This column is written by Bloomberg’s global team, sharing interesting insights from around the world.)

Hello everyone, I am K Oanh Ha, based in Hong Kong. Stop dreaming about lower prices for long-haul summer flights; the harsh reality is now in front of us.

Alton Aviation Consultancy states that the destruction caused by the war has affected the Persian Gulf, the world’s busiest transit corridor, leading to ticket prices for major routes between Asia and Europe soaring by as much as 560% in March, and prices are likely to remain high throughout the summer and even into the fall.

According to Alton Aviation Consultancy’s analysis of data from aviation data company Cirium and some online travel agencies, the average ticket prices for seven popular routes from Asia to Europe saw a year-on-year increase of about 70% in June. The average ticket price from Sydney to London currently exceeds $1,500, nearly double that of the same period in 2025. The price statistics cover direct flights, one-stop flights, and flights connecting through airports in the Gulf region.

The consultancy’s data also shows that as of March 23, the average ticket price from Hong Kong to London Heathrow Airport was $3,318, soaring 560% compared to the previous month, while ticket prices from Bangkok to Frankfurt surged by 505% to $2,870.

In the short term, there are almost no signs of relief. Even by October, ticket prices are expected to be about 30% higher than last year. Additionally, the pressure in the opposite direction is also evident. Ticket prices for flights from Europe to Asia have already skyrocketed, with year-on-year increases of up to 79% in June, and the current prices for some long-haul routes are nearly three times that of the same period last year.

Since the outbreak of the war, despite European and Asian airlines working hard to increase capacity, the demand and ticket prices for these routes continue to rise. The conflict has persisted for nearly a month, and the airline network is still struggling to adjust, while rising fuel costs further exacerbate the pressure, partly due to limited transportation through the Strait of Hormuz.

The most severely affected flights are those connecting Asia and Europe, many of which must pass through Middle Eastern hubs like Dubai, Abu Dhabi, and Doha. Airlines have already begun to pass these costs onto passengers. Aviation fuel accounts for about one-third of operating costs, and as oil prices rise sharply, concerns about shortages in the market have intensified. Airlines such as Air France-KLM, Cathay Pacific, and Air New Zealand have already raised fuel surcharges this month.

Next week’s highlights

Massive information, precise insights, all available on the Sina Finance APP.