Asian airlines’ Europe fare gains are slipping as Gulf carriers restore capacity and cut prices following the Iran conflict. Non-stop Asia-Europe traffic growth narrowed from nearly 30% year-on-year in March to 15% in May, while ANA’s load factor on European flights dropped from 93.1% in March to 86.9% in April. Cathay Pacific’s network load factor gain contracted from 9.5 percentage points in March to just 2 points in May. The shift reflects market normalization as Gulf operators, which halted flights during the February-April 2026 conflict, resume operations at approximately 60% of pre-war levels. Singapore Airlines, Korean Air, and Cathay Pacific face pressure to retain market share gained during the Gulf airspace closure, with transfer traffic demand softening as competition intensifies on key Asia-Europe routes.