Kuwait faces daily airspace revenue losses amid regional tensions

As tensions escalate in the Middle East, Kuwait finds itself grappling with an unexpected casualty of the ongoing conflict: its airspace revenues.

Once a vital artery for international air traffic, Kuwaiti skies—positioned along one of the world’s busiest eastbound corridors linking Europe to the Gulf and Asia—are now seeing a sharp drop in overflights.

Since the outbreak of war between Iran and Israel on June 13, flight tracking data has shown a steady shift in air traffic patterns.

Airlines have begun diverting their routes, avoiding not only Iranian and Iraqi airspace but, increasingly, Kuwaiti airspace as well. Many aircraft are now choosing to fly over Saudi Arabia or Central Asia to reach Europe and North Asia, bypassing traditional paths that passed directly above Kuwait.

This shift is proving costly. The country is losing an estimated 22,000 dinars per day in potential overflight fees—revenue that had been factored into the state’s budget projections. For the 2025/2026 fiscal year, Kuwait had anticipated 8 million dinars in overflight revenues. But with commercial airlines rerouting their paths due to regional instability, reaching that target is becoming increasingly difficult.

Kuwait first introduced overflight fees on January 1, 2015. These charges—set at 40 dinars per aircraft—apply to all flights crossing Kuwaiti airspace without landing. The fees help cover the costs of navigation and air traffic services provided by Kuwait International Airport.

While exceptions exist for United Nations aircraft, humanitarian missions, and certain government or military flights (provided reciprocal agreements are honored), most commercial aircraft are subject to the fee.

Data compiled by Al-Rai shows just how much the conflict has disrupted air traffic. Between June 1 and 12, prior to the outbreak of hostilities, 2,039 flights departed Kuwait, carrying 228,155 passengers.

However, in the week following the start of the Iran-Israel war, departing flights dropped to 1,063, with 1,080 arrivals during the same period. Total passenger volume through Kuwait International Airport from the start of the month to June 20 reached 824,159, with 56 percent of those arriving in the country.

Despite the downturn, certain destinations remain popular. Last week, Dubai topped the list with 108 departures from Kuwait, followed by Cairo with 86 flights. Damascus came in third with 54, followed by Riyadh, Doha, Bahrain, Jeddah, Abu Dhabi, Amman, and Sohag.

Historically, overflight fees have played a growing role in Kuwait’s aviation income. Revenues stood at 3.4 million dinars in 2020/2021, rising to 4.6 million the following year. In 2023/2024, Kuwait collected 7.2 million dinars and projected 6.5 million for 2024/2025. The current fiscal year’s 8 million dinars target now hangs in the balance.

With regional airspace becoming more volatile, and rerouted flights becoming the norm, Kuwait faces the broader challenge of sustaining its aviation-related income in the face of geopolitical uncertainty—another reminder of how far-reaching the consequences of conflict can be, even in areas untouched by physical destruction.