Domestic airlines cancelled around 357 international flights on Monday (March 2), with more cancellations expected over the rest of the week due to airspace restrictions across West Asia following the joint US–Israel strikes on Iran and subsequent Iranian retaliatory attacks, the Ministry of Civil Aviation said on Monday.
“A total of 559 grievances have been addressed during this period through AirSewa, social media platforms, and dedicated helpline calls, in coordination with airlines and concerned stakeholders,” the ministry added in its statement on social networking website X (formerly Twitter).
IndiGo, Air India, Air India Express, SpiceJet, and Akasa Air suspend operations
IndiGo, Air India, Air India Express, SpiceJet, and Akasa Air have all suspended operations to the Middle East due to the closure of airspaces over Iran, Iraq, Israel, Jordan, Lebanon, Kuwait, Saudi Arabia, the United Arab Emirates, Bahrain, Qatar, and Oman, with around 1,050 flights cancelled since February 28.
Emirates, FlyDubai, Qatar Airways, Etihad Airways, Gulf Air, Saudia, and Kuwait Airways have also cancelled around 4,077 flights since February 28.
The closure of airspace is expected not only to inconvenience passengers in the coming weeks but also to significantly impact the finances and international expansion plans of Indian carriers in the final quarter of FY26.
Air travel between India and destinations in the UK, Europe, the Middle East, and North America is likely to face substantial disruptions as airlines grapple with severe operational challenges caused by widespread airspace closures.
Projected net loss of ₹17,000–18,000 crore for Indian aviation sector
Analysts warn that the fallout from these disruptions could mark only the beginning of a deeper crisis. If the situation persists, airlines may face an additional financial burden estimated at “hundreds of crores” due to higher operating costs and lost revenue. This would compound the industry’s projected net loss of ₹17,000–18,000 crore for the ongoing financial year.
Domestic carriers had already been avoiding Iranian airspace in the weeks preceding the escalation. With Pakistan maintaining its airspace closure to Indian airlines since May 2025, carriers are now left with limited viable flight paths to Europe and North America should they attempt to restart services in the near term.
The current restrictions are forcing Indian airlines to operate significantly longer routes, bypassing the entire corridor from Pakistan through Iraq. This presents a major challenge for domestic carriers, for whom international operations remain a key revenue source. The timing is particularly difficult as the Indian rupee’s depreciation against the US dollar has made dollar-denominated earnings from overseas flights an important hedge for airlines.