Jul 17, 2026 – 12.00pmWhen the Iran conflict broke out in February, the shock to the airline industry was measured by the soaring cost of jet fuel, disruption to passenger routes that transited through the Middle East, and airlines such as Qantas and Virgin Australia scrambling to adjust their schedules.But behind the scenes, a bigger struggle was playing out in Australia, where the war pushed the ailing regional flight sector into a fight for its survival.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Ayesha de KretserSenior reporterAyesha de Kretser is a senior reporter with The Australian Financial Review covering the aviation and tourism sectors. She has previously reported on banking, mining and commodity markets.Fetching latest articles