Domestic airlines have cancelled around 750 international flights on February 28 and March 1, with more cancellations expected to be announced over the rest of the week due to airspace restrictions over West Asia, leaving thousands of passengers stranded.
Of the total flights cancelled flights IndiGo has cancelled an estimated 450 flights, Air India has cancelled around 100 flights, Air India Express around 85 trips, SpiceJet around 75 flights and Akasa Air around 40 flights in the last two days due to the closure of the airspaces of eleven countries in West Asia due to the intensifying conflict, following joint US-Israel strikes on Iran and subsequent Iranian retaliatory attacks.
Emirates, FlyDubai, Qatar Airways, Etihad Airways, Gulf Air, Saudia, and Kuwait Airways have also cancelled 2,941 total flights on February 28 and March 1.
The closure of the airspaces is not only expected to impact passengers over the coming weeks but is expected to significantly affect the finances and international expansion plans of domestic airlines in the final quarter of 2025-26.
Financial Tailspin
Air travel between India and the UK, Europe, the Middle East, and North America is likely to face significant disruptions, with flights being delayed, cancelled, and rerouted, as airlines grapple with substantial operational challenges due to the closure of airspaces over Iran, Iraq, Israel, Jordan, Lebanon, Kuwait, Saudi Arabia, the United Arab Emirates, Bahrain, Qatar, and Oman.
Analysts warn that the potential fallout from ongoing disruptions could be just beginning, and if these issues persist, airlines may face an additional financial burden estimated at “hundreds of crores” due to increased operating costs and lost revenue. This compounds on top of the expected net loss of Rs 17,000-18,000 crore that the aviation industry is projected to incur in the ongoing financial year.
Strategic Rerouting
One-stop flights via Middle Eastern hubs are under pressure, leading to longer layovers or route diversions, noted Lokesh Sharma, a senior defence and aviation analyst.
“Flights between Asia, Europe, and North America are being rerouted. It’s not just a logistical issue, it’s a strategic shift in how airlines calculate viability, risk, and resource allocation,” Sharma said.
“Close to 500 outbound and 500 inbound flights linked to India are being impacted. If we assume an average of 220 seats per flight, even on extremely conservative estimates, the losses could be around $100 million per week for flights operating in and out of India,” Mark Martin, Founder and CEO of Martin Consulting said.
“Of the roughly 500 affected weekly services, if we consider about 200 are operated by Indian carriers and around 300 by international airlines. If the situation persists, the total financial hit could touch nearly Rs 3,600 crore over a month for all carriers combined,” he added