IN BRIEF
- Travellers in conflict zones may not be able to claim disruption costs.
- They have also been warned not to cancel flights themselves.
Australians planning overseas trips are being warned to think twice — and read the fine print — as escalating conflict in the Middle East disrupts global aviation and exposes gaps in travel insurance cover.
Airspace closures across the region, triggered by the US-Israel war on Iran, have caused widespread flight cancellations, stranded thousands of passengers and placed intense pressure on airlines, travel agents and insurers.
For Australians, the disruption is particularly acute, with the Middle East serving as a key gateway to Europe, Africa and beyond.
The federal government says tens of thousands of Australians are already affected, with industry figures warning the number is rising rapidly as disruptions compound.
Foreign Minister Penny Wong said on Monday that around 115,000 Australians are currently in the Middle East.
The Department of Foreign Affairs and Trade's (DFAT) Smartraveller website has do not travel advisories in place for several countries including Israel, Qatar, the United Arab Emirates, and Iran amid active military strikes and the risk of further escalation.
Smartraveller said flights can "change or stop at short notice", borders may close, and Australians travelling to or through the region "may be unable to leave if conflict escalates", even if their destination lies elsewhere.
Disruptions compounding as airspace remains closed
The Australian Travel Industry Association said the number of affected travellers is climbing sharply.
"As of this morning, there was 11,000 people impacted by these changes," said CEO Dean Long, citing numbers consistent with those given by the foreign ministry.
"We do expect, however, that to increase every 12 hours by around about 6,000 to 8,000 people as these cancellations compound."
Long said there are about 135 flights a day between Australia and the Middle East, meaning "at any given moment … there's 3,000 to 4,000 people on their way to the Middle East in both directions".
"The majority of airspace across the Middle East is still closed to commercial traffic," he said, noting the situation is reviewed nightly and will only reopen once authorities are certain it is safe.
Airlines, agents and tour operators are now working to manage the backlog. Long said more than 95 per cent of passengers stranded in hubs such as Qatar and Dubai had already been moved into hotels.
More than 30 wide-body aircraft from Middle Eastern carriers are currently positioned around Australia after returning from closed airspace.
Insurance exclusions triggered by war
While airlines are rearranging schedules, insurers are warning many travellers may be exposed once war exclusions apply.
"When there is a declaration of war, that often will invoke an exclusion into travel insurance policies," said Insurance Council of Australia CEO Andrew Hall.
"These are very serious scenarios that we're faced with ... people who are now in transit are in a war zone."
Sally Tindall, Canstar's data insights director, warned that not a single travel insurance policy on the Canstar database covers "claims arising from war, armed conflict, civil unrest, or military action".
Stopovers are considered a country of travel for insurance purposes, she added.
"Any stopover country with a Level four 'do not travel' warning will not be covered," Tindall said.
Long said standard war clauses had now been activated across travel insurance policies.
"For those people that are stuck overseas at the moment, they'll be unable to claim on the disruption parts of their coverage," he said.
"They will still have cover if something does go wrong from an illness perspective, but they won't be able to cover any of the disruption costs."
One insurer's policy, for example, states that while travel to destinations under a "reconsider your need to travel" warning may be covered, claims may be excluded if the warning arises from an act of war.
"Your policy does not provide cover for claims arising from or associated with travel to countries … for which a 'do not travel' warning has been released," its website states.
Both Hall and Long urged consumers not to cancel flights themselves.
Doing so could mean travellers have to pay cancellation fees or fare differences if they rebook.
Smartraveller also warns that "your travel insurance may not cover voluntary cancellations".
Tindall has advised checking airline policies, noting Qantas and Emirates have advised passengers travelling to or via impacted Middle Eastern destinations can request a refund or reschedule at no additional cost if they are due to travel on or before 5 March.
Virgin Australia and Etihad are offering similar options.
Wong said registering with DFAT remained critical for Australians in the region, while cautioning that assistance options were limited.
"The numbers and the situation obviously means that at this point, our capacity to provide much assistance is limited," she said, adding the government was hoping commercial flights would resume as "the fastest way to get people home".
Australians are being urged to rely on Smartraveller as their primary source of advice, closely monitor airline communications and carefully review insurance policies.
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