Reviewing impacts of the ongoing war in the Middle East, the head of the International Air Transport Association (IATA) said on Tuesday air fares increased related to costs, capacity and margins.

Willie Walsh said on Tuesday: "Without knowing the length and intensity of the war in the Middle East, it is impossible to quantify the full impact that it will have on airline prospects.

"But some things are already clear. Fuel costs have risen sharply. With tight capacity and thin margins, air fares are already rising."

The IATA said in a press release that total demand for air carriers in February was up by 6.1% on a yearly basis, while the demand was up by 5.9% for international and 6.3% for domestic routes.

Walsh added: "However, capacity deployment is also adjusting, particularly for traffic to, from, or through the Middle East, or in areas where fuel supply is an issue.

"Capacity growth scheduled for March, for example, has eased to 3.3% from earlier predictions of more than 5%." (AA)