Core Insights - The ongoing conflict in the Middle East is causing significant disruptions in air cargo operations, leading to increased freight rates and surcharges as businesses seek alternative airlift options [1][4] Industry Impact - Air cargo volumes experienced a year-over-year growth of 4% in 2025, with a strong start in early 2026, showing a demand increase of approximately 6% in the first two months, outpacing a capacity growth of 4% [5] - Global air cargo capacity has decreased by 18% week-over-week, with 13% of this reduction attributed to major Middle Eastern carriers such as Emirates, Qatar Airways, and Etihad Airways [6] - The Asia-Middle East/South Asia-Europe corridor has seen a nearly 40% drop in freighter and passenger-belly capacity, resulting in global cargo capacity being 21% below pre-Chinese New Year levels [7] Operational Adjustments - Airlines have suspended services to Israel and other Middle Eastern nations or have rerouted flights until the situation stabilizes, with FedEx halting all flights in and around the Arabian Gulf [8] - Qatar Airways Cargo has suspended operations due to closed Qatari airspace, although some limited freighter operations continue on routes avoiding Doha [9] Market Opportunities - The crisis may create opportunities for airlines and logistics companies as shippers look to avoid delays associated with ocean shipping, potentially leading to a shift from ocean to air freight, which could positively impact air freight pricing [4]