$100,000 vs $150,000 per flight: Emirates’ war insurance deal raises industry questions 

Emirates, the flagship carrier of the United Arab Emirates, is paying what industry executives describe as an unusually low premium for war risk insurance, even as airlines face mounting costs amid ongoing conflict in West Asia. 

According to a report by the Financial Times, the airline is paying an additional premium of about $100,000 a week for war risk cover, a rate that came into effect after hostilities escalated on February 28. 

Insurance executives cited in the report said the pricing stands out sharply against the broader market, where risks linked to flying into and out of the Middle East have surged. One executive described the premium as “outrageously” low given the scale of disruption, with thousands of flights already cancelled across the region. 

At least one insurance group declined to participate in the deal, pointing to the pricing agreed by lead insurer Atrium. “It’s very cheap cover, that we and others have not agreed to,” another executive familiar with the policy told FT. 

The cover, arranged by broker WTW, applies across Emirates’ entire fleet and reportedly provides protection of up to $2 billion in potential losses — close to the upper limit available in global speciality insurance markets, the report added. 

Costs surge for rivals 

The contrast with other airlines is stark. Industry sources told the FT that carriers — particularly those based outside the Gulf — are being quoted between $70,000 and $150,000 in additional premiums per flight into the region. 

Private jet operators are facing even steeper charges, with some paying as much as $50,000 per aircraft for a single trip into Middle Eastern airspace. 

Executives at international airlines have flagged the sharp escalation in insurance costs. One European airline executive described the pricing environment as “blackmail,” reflecting the limited options available to carriers that must maintain operations. 

“You effectively have to fall in line, otherwise you risk not writing Emirates’ [business],” an insurer that accepted the lower-rate coverage told the FT. 

Scale and leverage at play 

Industry insiders attributed Emirates’ favourable terms to its scale, bargaining power and long operational experience in the region. The airline remains one of the world’s largest international carriers by passenger traffic, giving it significant influence in negotiations with insurers. 

The FT report noted that Gulf carriers typically benefit from more competitive insurance arrangements than international rivals, particularly during periods of regional instability. 

While Emirates has continued operations, other Gulf-based airlines — including Etihad Airways, Air Arabia and Qatar Airways — have resumed only limited services amid the prolonged conflict. 

In contrast, several global airlines such as British Airways, Lufthansa and Cathay Pacific have suspended flights to Dubai until at least the summer, underscoring the widening divide in how carriers are navigating the region’s escalating risk environment.