Saudi Arabia disruption drives charter costs and aviation insurance premiums higher

Private aircraft charter prices in Saudi Arabia have risen by more than 50% following a series of Houthi attacks on the country’s airports, as rising aviation war-risk insurance costs add to the expense of moving travellers out of the region.

More than 5,500 departing flights have been cancelled since the attacks began in early October, according to aviation analytics company Cirium, prompting businesses and travellers to seek alternative routes.

Riyadh’s King Khalid International Airport reopened on 18 October following an eight-day closure, although commercial services remain severely disrupted, with several international airlines continuing to suspend flights to Saudi destinations.

According to the Financial Times, a private flight from Al-Qassim airport to Geneva recently cost €94,000, compared with approximately €60,000 before the disruption. Travellers have been using Al-Qassim, more than 200 miles from Riyadh, as an alternative departure point.

Charles Robinson, Founder of private aviation marketplace EnterJet, told the Financial Times that charter flights from Saudi Arabia to Europe were being sold for as much as US$150,000, while journeys to the United Arab Emirates were costing between $30,000 and $50,000.

War-risk insurance adds to costs

Aviation insurance is contributing to higher charter prices, with operators facing additional premiums for flights into areas affected by the conflict.

Toby Edwards, Co-Chief Executive Officer of aviation broker Victor, told the Financial Times that war-risk insurance could add approximately $20,000 to the cost of operating larger private aircraft, compared with $8,000 for smaller jets.

Robinson said additional insurance costs were accounting for as much as 10% of some regional flights, with higher charges applying to journeys directly involving Saudi Arabia.

The increases come as some aircraft operators withdraw from affected routes, reducing available capacity while demand for alternative transport rises.

Several Western companies have reportedly approached aviation brokers about relocating senior personnel from Riyadh, either to Dubai or to their home countries.

Implications for assistance providers

The disruption presents logistical challenges for travel risk management and assistance companies coordinating departures from affected areas, particularly where commercial flights are unavailable or alternative airports require lengthy ground transfers.

Higher charter costs, limited aircraft availability, and changing airspace restrictions may complicate evacuation planning, although the reported price increases relate to private aviation rather than medical repatriation specifically.

The situation also reinforces the importance of distinguishing aviation war-risk insurance, which protects aircraft operators against specified conflict-related exposures, from travel insurance policies, where war exclusions and emergency assistance provisions vary.

Airlines including Etihad Airways, Qatar Airways, and flydubai have extended cancellations on several Saudi routes until at least 24 October, while other carriers have suspended services for longer.

The UK’s Foreign, Commonwealth & Development Office has advised against all but essential travel to Saudi Arabia, adding to the need for travellers, insurers, and assistance providers to monitor developments closely.