DFWC: Middle East conflict stalls international passenger growth in Q2
By Naomi Chadderton |
The Duty Free World Council (DFWC) has reported a slowdown in global international air traffic during the second quarter of 2026, with the conflict involving Iran contributing to a sharp decline in passenger numbers across the Middle East.
According to the latest DFWC Q2 KPI Monitor, produced by research agency m1nd-set, global international departures totalled 580 million during the quarter, representing 99% of Q2 2025 levels.
The Middle East and Africa experienced the steepest decline, with international departures falling to 48 million – 71% of the level recorded during the same period last year. By contrast, Asia Pacific and North America both posted 5% year-on-year growth, reaching 138 million and 66 million international departures respectively, while South America also grew by 5% to 35 million passengers. Europe recorded more modest growth of 2%, with 292 million international departures.
London Heathrow retained its position as the world’s busiest airport for international departures in Q2 with 12.7 million passengers, followed by Amsterdam and Singapore (10.9 million each), Seoul Incheon (10.8 million) and Paris Charles de Gaulle (10.4 million). Dubai International dropped out of the top 10 during the quarter amid the regional conflict, with Kuala Lumpur taking its place.
Commenting on the findings, DFWC President Sarah Branquinho said: “With geopolitical tensions in the Middle East creating an increasingly uneven global landscape, the DFWC KPI Monitor traffic data clearly illustrates the vulnerability of international travel to external influences and shocks.
“While the sharp decline in traffic across the Middle East is significant, the resilience shown by Asia Pacific, Europe and the Americas underlines a fundamentally strong appetite for travel.”
Beyond passenger traffic, the report highlights continued opportunities for travel retailers. Good value for money remains the leading purchase driver, cited by 29% of shoppers, followed by convenience (22%) and brand loyalty (19%).
The biggest barrier to purchasing was travellers choosing to buy elsewhere (18%), followed by not wanting to carry additional items and having no intention of shopping, both cited by 16% of respondents. A lack of motivating discounts and perceptions of higher prices than at home were each identified by 14% of non-shoppers.
The monitor also found that 68% of travellers enter duty free stores without a firm purchase decision, with 46% browsing without a specific product in mind and a further 22% making impulse purchases. Six in 10 shoppers buy primarily for themselves, while one in five purchases gifts.
Interest in product discovery also remains high, with 62% of shoppers seeking brands or products they have not previously tried and 65% looking for exclusive items available only in duty free.
Pre-shopping research continues to increase, with 32% of travellers seeking information before entering a store. General internet searches are the leading source of information (21%), followed by social media, duty free retailer websites and travel websites (16% each).
The report also points to growing importance of in-store engagement, with 56% of shoppers interacting with sales staff during their latest shopping trip, up from 51% in Q1 2026. Three quarters of those shoppers said the interaction had a positive impact on their overall shopping experience.
“As consumers become more spontaneous, with almost seven out of 10 travellers still open to influence when they enter the shops, there are significant opportunities to convert shoppers through experiential retail, including activations, in-store merchandising and engaging staff interactions,” said Dr Peter Mohn, Owner and CEO of m1nd-set.
“Retailers must focus on creating environments that not only showcase products but also inspire discovery and create meaningful connections with shoppers. By combining compelling experiences, personalised engagement and exclusive products and offers, the industry can better respond to evolving expectations and transform the duty-free store into a more powerful driver of shopper engagement and purchase conversion.”
READ MORE: DFWC Q1 2026 KPI Monitor highlights the power of human interaction
READ MORE: DFWC FY 2025 KPI Monitor shows intl. departures up 7% to 2,28 billion
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