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Kindly note the image has been published only for representational purposes. Photograph: Kind courtesy Indigo/Facebook
Key Points
- Flight cuts to GCC and CIS regions have significantly lowered utilisation, leaving aircraft grounded and affecting airline revenue streams.
- Closure of Pakistani and Iranian airspace has increased flight durations, raising fuel consumption and operational costs sharply.
- Redeploying capacity domestically remains difficult due to regulatory approvals, weak demand alignment, and commercial viability challenges.
Indian airlines are facing revenue losses of about Rs 2,500 crore (Rs 25 billion) amid the ongoing conflict in West Asia, according to the latest estimates shared by the industry.
The situation could deteriorate further if the war drags on and airspace across Iran — and, crucially, Pakistan — remains shut, eroding the economics of the lucrative India-Europe corridor.
The broader conflict in West Asia, the largest international market for Indian carriers, has forced a sharp reduction in daily flights relative to the summer schedule.
The result: Significant underutilisation of capacity, grounded aircraft, and mounting revenue losses.
According to global aviation analysts, IndiGo, which has approval to operate 310 international flights a day in the summer schedule, is currently flying only about 60 per cent of that capacity.
It has cut 115 flights to Gulf Cooperation Council (GCC) countries and another 10 to Commonwealth of Independent States (CIS) destinations where services from India have been suspended.
The airline commands close to a 40 per cent share of the India-GCC route.
The Air India group is also affected. Estimates suggest it is operating only 30 to 40 flights a day to the six GCC countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates), against a schedule of more than 100 flights to the region.
Redeploying surplus capacity to domestic routes is, however, far from straightforward.
“We don’t know in advance how many flights are being permitted — it’s often a last-minute decision in places like Dubai or Abu Dhabi,” said a senior airline executive who did not wish to be named.
“GCC carriers get priority in slot allocation. On certain routes like Ras Al Khaimah, traffic is largely one-way, with passengers returning to India. Aircraft have to depart empty, which is commercially unviable.”
While efforts are under way to redeploy capacity, the process is slow, say airline executives. New routes require regulatory approvals, advance ticket sales, and sustained marketing — steps that can take a month or more.
“The impact of the West Asia situation extends beyond point-to-point traffic,” an executive said.
“Indian carriers are building the country as a transit hub — bringing passengers from the GCC to Southeast Asia and Saarc markets. Even this fledgling business is taking a hit.”
IndiGo, Air India Face Route Impact
And then there is the restricted airspace over Iran and, more critically, Pakistan — vital corridors for India-Europe operations.
“Indian carriers are seeing 40 to 50 per cent higher block times due to the unavailability of Pakistani and some West Asian airspace,” said an airline CEO.
“That means higher fuel burn, which will translate into increased fuel surcharges for passengers. European and CIS carriers are not similarly affected, as they can overfly Pakistan.”
The closure of Pakistani airspace has already forced Indian carriers like IndiGo to suspend services to CIS countries.
A Delhi-Manchester flight, for instance, now takes over three hours longer, resulting in a 30 to 35 per cent increase in aviation turbine fuel consumption, at a time when fuel prices are themselves rising.
Even on long-haul US routes, Air India faces extended flying times of up to five hours due to airspace constraints, placing it at a disadvantage relative to European rivals.
This has opened an opportunity for foreign carriers to position themselves as transit hubs for onward travel within Europe.
Indian airlines point to intensifying competition. Airspace disruptions have enabled foreign carriers to expand direct services between Europe and India, capturing market share.
Lufthansa, for instance, has increased frequencies on four routes, including scaling Frankfurt-Delhi services from five weekly flights to daily operations starting the end of April.
Swiss International Air Lines, Air Canada and British Airways are also planning frequency additions.
The Air India group is no less affected. Estimates suggest it is operating only 30 to 40 flights a day to the six GCC countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates), against a schedule of more than 100 flights in the region.
Redeploying surplus capacity to domestic routes is, however, far from straightforward.
“We don’t know in advance how many flights are being permitted — it’s often a last-minute decision in places like Dubai or Abu Dhabi,” said a senior airline executive.
“GCC carriers get priority in slot allocation. On certain routes such as Ras Al Khaimah, traffic is largely one-way, with passengers returning to India. Aircraft have to depart empty, which is commercially unviable.”
Airspace Curbs Raise Flight Costs
Airline executives say that while efforts are under way to redeploy capacity, the process is slow. New routes require regulatory approvals, advance ticket sales, and sustained marketing — steps that can take a month or more.
“The impact of the West Asia situation extends beyond point-to-point traffic,” the executive added.
“Indian carriers are building the country as a transit hub — bringing passengers from the GCC to Southeast Asia and Saarc (South Asian Association for Regional Cooperation) markets. Even this fledgling business is taking a hit.”
And then there is restricted airspace over Iran and, more critically, Pakistan — vital corridors for India-Europe operations.
“Indian carriers are seeing 40-50 per cent higher block times due to the unavailability of Pakistani and some West Asian airspace,” said an airline CEO.
“That means higher fuel burn, which will translate into increased fuel surcharges for passengers. European and CIS carriers are not similarly affected, as they can overfly Pakistan.”
The closure of Pakistani airspace has already forced Indian carriers such as IndiGo to suspend services to CIS countries.
A Delhi-Manchester flight, for instance, now takes over three hours longer, resulting in a 30-35 per cent increase in aviation turbine fuel consumption, at a time when fuel prices are themselves rising.
Even on long-haul US routes, Air India faces extended flying times of up to five hours due to airspace constraints, placing it at a disadvantage relative to European rivals.
This has opened an opportunity for foreign carriers to position themselves as transit hubs for onward travel within Europe.
Indian airlines point to intensifying competition. Airspace disruptions have enabled foreign carriers to expand direct services between Europe and India, capturing market share.
Lufthansa, for instance, has increased frequencies on four routes, including scaling Frankfurt-Delhi services from five weekly flights to daily operations starting end-April.
Swiss International Air Lines, Air Canada and British Airways are also planning frequency additions.
Feature Presentation: Aslam Hunani/Rediff
