Flight cancellations on 17 March reduced to just under 27% after a drone attack on fuel facilities near Dubai International airport a day earlier temporarily shut the airport. Flight tracking data indicates that on Tuesday there were only 721 flights cancelled out of the 2,674 scheduled, which was a slight improvement from the 34% cancellation rate the day prior. Yet, schedules data from the year prior show that the level of operations in the region remains at a relative trickle as several carriers extend their flight cancellations to the Middle East, while the key super connectors Emirates and Qatar Airways are not operating a commercial schedule.

That is as several news outlets report that air defenses in the United Arab Emirates and Qatar have continued to intercept Iranian drones and missiles.

The Government of Dubai Media Office confirms on 18 March that " sounds heard across parts of the city were the result of successful air defense interception operations".

Despite the short-term challenges, analysis of schedules data indicates that over the last week of schedule filings, the net number of flights to be operated during the April-October period, largely covering the northern summer season, has increased by 20,497, generating nearly 2.5 million additional seats. Those are subject to change, but for now the indications are that despite the disruption to Middle Eastern airspace, spiking fuel prices and potential shifts in consumer sentiment, airlines are still planning for a strong peak travel season.

US ultra-low-cost carrier Frontier Airlines is reviewing its full-year guidance amid a spike in fuel prices linked to the war in Iran. "An update will be provided in conjunction with the release of first quarter 2026 results," Frontier says in a 17 March filing to the US Securities and Exchange Commission. The Denver-based carrier notes jet fuel prices have "increased significantly" since it last issued guidance. Prices are now expected to average approximately $3 per gallon for the first quarter of 2026 based on the jet fuel curve as of 13 March, compared to the $2.50 per gallon price that underpinned its prior guidance, noting that that will drive approximately $45 to $50 million incremental fuel expense in the first quarter of 2026. "Frontier's fuel efficiency advantage of over 40% compared to the major US carriers is expected to better position the company to mitigate the impact of elevated fuel prices, should the higher fuel prices persist," it says. At the ISTAT Americas conference in San Diego on 9 March, Frontier's president and chief executive James Dempsey said its A321neo fleet "will be very helpful in today's environment" given that oil prices had been "spiking over the last four or five days, quite considerably". Frontier says in the 17 March filing that it now expects first quarter 2026 adjusted (non-GAAP) diluted loss per share of between $0.32 and $0.44, which is within its prior guidance range. This, it adds, is driven by significantly higher revenue performance during the quarter, albeit offset by the recent spike in jet fuel prices and operational disruptions arising from storms on 15 and 16 March, "with lingering impacts expected in order to restore normal operations". Its underlying expectations regarding first quarter 2026 expected tax expense of $3 million to $5 million and approximately 229 million of weighted average shares outstanding on a diluted basis remain unchanged from its prior guidance. It says "strong travel demand, moderating competitive capacity, and continued progression" of its revenue management initiatives are "driving meaningfully higher unit revenues". It now expects adjusted RASM to increase by mid-teens on a percentage basis over the corresponding prior year quarter, higher than prior guidance, and adds that strong demand and fare trends are extending into the spring booking season, "supporting meaningful expected revenue growth relative to the corresponding prior year period." Frontier expects total liquidity at the end of March 2026 to be over $900 million, an increase from $874 million reported at the end of December 2025.

Allegiant Travel Company's waiting period to receive US antitrust clearance for its proposed acquisition of Sun Country Airlines has been terminated early. The parent of Allegiant Air says the early termination of the waiting period under the US Hart-Scott-Rodino Antitrust Improvements Act of 1976 is "an important step toward completing the combination of the two airlines". The Hart-Scott-Rodino act establishes waiting periods that must elapse before the consummation of company acquisitions, says the US Federal Trade Commission. It requires companies to file pre-merger notifications with the FTC and the Antitrust Division of the Justice Department for certain acquisitions. "We are pleased to receive US antitrust clearance from the Department of Justice," Allegiant chief executive Greg Anderson states. "Together, Allegiant and Sun Country will create a stronger leisure-focused airline, offering a broader network, more travel options and increased long-term value creation for our shareholders." Allegiant notes that the acquisition of Sun Country remains subject to other customary closing conditions, including approval from the Department of Transportation and from Allegiant and Sun Country shareholders. The US carriers now expect the transaction to close in the second or third quarter of 2026, a revision of their previous expectation of closing it during the second half of 2026. Allegiant and Sun Country in January agreed to combine in a cash and stock deal valued at $1.5 billion. Each will operate separately until they obtain a single operating certificate. The combined company will be headquartered in Las Vegas, where Allegiant is based, and maintain a presence in Minneapolis-St Paul, home to Sun Country.