The Globe and Mail reports in its Friday edition that the Iran war cost CAE millions of dollars in its latest quarter, as the company navigates a "reset year" that will see it drastically reduce its global footprint in a bid to lower expenses, said chief executive officer Matthew Bromberg. A Canadian Press dispatch to The Globe reports that the CEO said the conflict accounted for two-thirds of a drop in adjusted operating income in its civil aviation segment. He said, "The Middle East is causing disruption in fuel prices around the world, and that's affecting some of our customers." Mr. Bromberg added that he views the earnings hit as temporary. "We're able to work with a lot of our airlines to reroute their training, to put them in other facilities, but that has a cost as we move their training centres and sometimes instructors to other facilities." On the civil side adjusted income decreased nearly 14 per cent year-over-year to about $106-million in the quarter ended June 30, mainly owing to the Iran conflict. Rising jet fuel costs from the closing of the Strait of Hormuz have increased fares and reduced travel demand, leading airlines to cut profitable or risky routes and dampening the need for pilot training.