Emirates is paying significantly lower war risk insurance premiums than rival airlines, even as geopolitical tensions in the Middle East push costs sharply higher across the aviation sector, according to the Financial Times.
The news outlet cited multiple insurance executives with direct knowledge of the arrangements, reporting that the Dubai-based airline is paying roughly $100,000 per week in additional premiums to cover its entire fleet operating in and out of the region. By contrast, other international carriers are reportedly being quoted between $70,000 and $150,000 per individual flight landing in the Gulf.
One insurance executive described Emirates’ deal as “outrageously low,” highlighting the widening disparity in pricing as underwriters reassess exposure following the escalation of conflict involving the US, Israel, and Iran.
The ongoing hostilities have significantly disrupted regional aviation. Thousands of flights have been cancelled over the past month, while Dubai International Airport (DXB) has intermittently suspended operations due to missile and drone activity in nearby airspace.
Despite these conditions, Emirates has continued to operate at scale, supported by a war risk policy negotiated by the broker WTW. The agreement reportedly provides up to $2 billion in coverage for potential fleet losses, close to the upper limits available in global specialty insurance markets. The airline has already resumed more than half of its pre-conflict operations, even as passenger demand remains subdued.
Part of the reason Emirates was able to command negotiating power is that its fleet is valued at tens of billions of dollars, giving it significant leverage in negotiations with insurers. “You effectively have to fall in line, otherwise you risk not writing Emirates’ business,” one insurer told FT, pointing to the commercial pressure faced by underwriters seeking access to large, high-value accounts.
At least one insurer reportedly declined to participate in the placement due to concerns over the pricing.
The divergence in war risk premiums is increasingly shaping airline strategy in the region. Aviation analyst John Strickland told FT that elevated insurance costs alone could act as a “show-stopper” for carriers considering a return to Middle Eastern routes.
However, executives noted that Gulf-based airlines, including Emirates, Etihad Airways, and Qatar Airways, are generally receiving more favorable insurance terms than international rivals.
This advantage stems partly from their operational experience in the region, as well as established coordination with local authorities and air traffic control systems. Flights departing Dubai, for instance, follow tightly controlled corridors, with military monitoring and clearance procedures in place to mitigate risk.
Additional defensive support from Western allies, including French and British military assets equipped with advanced radar systems, has further reinforced the region’s aviation safety framework.
Even so, many global carriers have opted to suspend services to Dubai altogether. Airlines such as British Airways, Lufthansa, and Cathay Pacific have paused flights until at least the summer, citing both safety concerns and prohibitively high insurance costs.
