Airlines last night said they were monitoring the war on Iraq - but said it was too early to say what impact the military action would have on their businesses.

Flights were operating as usual in and out of the Island, and most passengers in Bermuda said they felt totally comfortable flying and had not even noticed any increase in security.

US Airways said it had not cancelled any flights whatsoever as of last night, but was continuing to watch the situation in the middle east.

Spokeswoman Amy Kudwa said, however, that the airline was giving passengers greater flexibility if they felt uncomfortable flying.

She said: “Our Peace of Mind policy allows passengers which are travelling between March 19 and June 17 to have the flexibility to make changes to their travel without incurring any additional fees.

“Customers have until December 15 to start their trip.”

She said it was too early to say how many people had taken advantage of the new policy or what measures would be taken by the airline, such as a drop in flight costs.

She added: “We don't have (cancellation) numbers yet, however, we have received a high call volume today, so I can say that customers are interested in knowing more about the new policy.”

Delta Airlines yesterday said the entire organisation had only cancelled one flight, which was from Paris to Bombay.

Spokeswoman Liza Caceres said: “Right now, Delta is still monitoring the situation and we have not made any decisions regarding capacity or network changes in Latin America or the Caribbean (which Bermuda comes under).

“If we make changes to our operations we will notify customers as soon as possible. I think Delta International has only cancelled one flight - and that was to Bombay.”

Ms Caceres said it was too early to say whether passengers had started to cancel or defer flights.

She added: “That is something that we are still monitoring.”

Spokesman for British Airway in Bermuda Sallie Singleton last night said people seemed to be staying with their travel plans for the time being.

She said: “Our flights are really very, very busy at the moment, so we are not noticing any major changes.

“However, British Airways has suspended flights now to Kuwait and to Tel Aviv. Of course, BA is a major airline in the Gulf states and it's extremely important to the airline, so many of these flights are now going through Cyprus.

“It's of great concern to us the safety of our passengers and staff, so the situation is being monitored on a minute by minute basis.” It is believed that Continental Airways was also continuing as usual last night. American Airlines did not return calls to The Royal Gazette.