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Industry news round-up: July 2025

Last month's business travel landscape underscored the growing intersection of geopolitical risk, cybersecurity threats, and operational volatility. From airspace closures in the Middle East to labor uncertainty in U.S. hotels and evolving digital vulnerabilities, the month’s events underscore the importance of agility, insight, and proactive planning in managing today’s business travel programs.
July 1, 2025
Industry news round-up: July 2025

What to know about flights in the Middle East right now

Amid escalating tensions following Iran's retaliatory missile attacks on Israel and U.S. military bases in Qatar, several Middle Eastern countries, including Qatar, the UAE, Kuwait, and Bahrain, temporarily closed their airspace. This led to widespread flight cancellations, delays, and diversions, affecting thousands of travelers.

In response, major U.S. airlines have implemented flexible travel policies:

  • American Airlines: Issued a change-fee waiver for flights to, through, and from Doha and Dubai for travel through July 6.
  • United Airlines: Offering rebooking options for Dubai flights purchased on or before June 17 for travel through July 3, and for Tel Aviv flights for travel through August 1.
  • Delta Air Lines: Providing options for travelers booked on flights to, through, or from Tel Aviv to change their travel plans through the end of August.

While operations have resumed at most affected airports, including Doha’s Hamad International Airport, travelers are advised to stay informed about potential disruptions and airline policies.

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U.S. issues worldwide travel alert: What it means

On June 22, 2025, the U.S. State Department issued a "Worldwide Caution Security Alert," advising American travelers to exercise increased vigilance abroad due to the escalating Israel-Iran conflict. While this alert underscores potential risks such as demonstrations and travel disruptions, it doesn't equate to a blanket travel ban. Experts recommend that travelers research specific destinations, consult local contacts or travel advisors, and consider comprehensive travel insurance, like Cancel For Any Reason (CFAR) policies. Enrolling in the Smart Traveler Enrollment Program (STEP) can also provide real-time updates and facilitate assistance during emergencies.

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North American airlines hit by cyber attacks

In June, two North American airlines experienced cybersecurity incidents, highlighting growing threats to the aviation sector. Hawaiian Airlines reported a cyber attack that disrupted some IT systems, though flights continued safely and on schedule. WestJet Airlines also suffered a breach affecting internal systems, leading to intermittent booking issues, while flight operations remained unaffected. Cybersecurity experts have linked these incidents to the hacking group "Scattered Spider," known for targeting major industries with sophisticated attacks. American Airlines also experienced a widespread outage on June 27 that stranded thousands of travelers, though the cause is still unclear.

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U.S. hotels caught in political and economic tug-of-war

U.S. hotels are facing significant challenges due to the Trump administration's fluctuating immigration enforcement policies. Initially, there was a directive to pause Immigration and Customs Enforcement (ICE) raids on sectors like hospitality, but this was quickly reversed, leading to confusion and uncertainty within the industry. The hospitality sector, which heavily relies on immigrant labor, is grappling with labor shortages exacerbated by these policy shifts, making it difficult to maintain operations and plan for the future.

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