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Israel-Iran Conflict Costs Indian Airlines Crores Daily, Strands Thousands of Passengers

While the temporary ceasefire between Israel and Iran has offered some hope for aviation recovery, the underlying volatility persists.

Detours, Delays, Disruption: India’s Airlines Reeling Under Iran-Israel Fallout | Image: AP

The military conflict between Iran and Israel has triggered severe disruptions to international airline operations in India, with major carriers grounding flights, scrambling for alternate airspace, and facing mounting passenger chaos. Following Iran’s missile strike on a U.S. military base in Qatar, the closure of Iranian and Persian Gulf airspace has effectively cut off a critical aerial corridor for Indian airlines operating westward — impacting routes to Europe, the Middle East, and North America.
The ramifications are unprecedented in scale since the Russia-Ukraine war in 2022. The current shutdown has compounded challenges already posed by partial Pakistani airspace restrictions, forcing detours, delays, and outright suspensions across the Indian commercial aviation network. The Ministry of Civil Aviation is closely monitoring the evolving security crisis, but for now, operators have adopted a reactive posture: prioritize safety, reroute where possible, and ground flights when risk is unacceptable.

India’s national carrier, Air India, has borne the brunt of the disruption. As of June 24, 2025, the airline confirmed the complete suspension of all flights to and from the Middle East, Europe, and five transatlantic destinations — including Muscat, Sharjah, Abu Dhabi, Dammam, and Dubai. The grounded operations amount to nearly 30% of its deployed capacity, affecting thousands of travellers daily.

Air India Express, its low-cost subsidiary with a strong footprint across Gulf routes, has halted flights to more than 15 cities in the Middle East. This has severed a vital lifeline for India’s large expatriate workforce in the Gulf, particularly during peak summer repatriation season. Industry insiders estimate that the shutdown is costing the Tata Group-owned airline upwards of ₹10 crore per day in operational revenue, excluding long-term reputational costs.

Air India’s management issued a formal travel advisory, stating: “We are rerouting flights via alternative corridors wherever feasible. Safety remains paramount. We request passengers to stay updated through our website and helpline.” Long-haul routes to the U.S. and Europe have been rerouted via Egyptian and North African airspace, adding over an hour of flight time and leading to fuel surcharges that may soon reflect in ticket prices.
IndiGo Resumes Partial Services Post-Ceasefire, But Delays Continue
IndiGo, India’s largest airline by market share, initially suspended operations in the Middle East during the peak of hostilities. Following a limited ceasefire declared on June 23, it resumed select services to the region on June 24. However, flights to Sharjah and select Gulf destinations remain suspended, while others face chronic delays and detours, including those routed via Oman and the Red Sea.
The airline has also witnessed extended turnaround times at congested Indian airports like Delhi, Kochi, and Hyderabad, due to irregular aircraft rotation and diverted schedules. IndiGo issued a caution to passengers, urging them to use its website and mobile app for real-time flight tracking and rebooking options.

SpiceJet, Akasa Brace for Extended Disruptions

SpiceJet and Akasa Air, while having a smaller Middle East footprint, have acknowledged ongoing disruptions in their networks. SpiceJet cited “airspace uncertainty and crew reallocation” as primary causes for service hiccups to destinations like Ras Al Khaimah and Riyadh. Akasa, which recently began international operations, confirmed that its new routes to Doha and Bahrain have been impacted, with passengers advised to await rescheduling options.
Aviation analyst Rajiv Ghosh of CAPA India noted: “This crisis hits India’s outbound aviation harder than most other countries because our westbound traffic — to Europe and North America — disproportionately depends on corridors through Iranian, Iraqi, and Gulf airspace. Alternative paths over the Red Sea are longer, expensive, and now crowded due to similar diversions from Western carriers.”

Operation Sindhu: Evacuation Flight Returns Mid-Air

The conflict’s spillover has also endangered evacuation efforts. Under the government-led Operation Sindhu, an Air India evacuation flight carrying 160 stranded Indian nationals from Kuwait was forced to turn back midway after Iran closed civilian airspace. Passengers reportedly spent nearly 12 hours in the air, circling alternate air corridors before returning to Kochi. The Indian Embassy in Kuwait has since halted further civilian repatriation efforts until airspace routes are clarified.

Passenger Toll: Delays, Detours, and Dead Ends

For travellers, the impact has been harsh. Reports from major Indian airports describe snaking queues, flight cancellations, and mass rebookings. Passengers heading to London, Frankfurt, New York, Toronto, Doha, and Tel Aviv have had to reschedule or reroute, often on short notice. Several flights have been diverted via Egypt and the Mediterranean corridor, adding up to 90 minutes to total flight times.
Air cargo operators have also flagged delays in perishable shipments bound for Europe and North America. The Delhi Exporters’ Forum estimates a daily loss of ₹5–6 crore from delayed agro-exports and pharma consignments.
Airport authorities in Mumbai and Delhi have requested airlines to provide advance notice of cancellations to mitigate terminal congestion. Air traffic controllers remain on alert for detour traffic as both Indian and foreign carriers shift to alternative corridors over the Arabian Sea and Red Sea.

Government’s Response: Safety First, Business Later

The Indian government, through the Ministry of Civil Aviation, has convened a high-level review with airline CEOs, Directorate General of Civil Aviation (DGCA) officials, and Indian Air Force (IAF) airspace controllers to assess the situation. Civil Aviation Minister Jyotiraditya Scindia issued a statement on June 24 stating: “The government is in close coordination with international ATC authorities and our own security agencies. Passenger safety is non-negotiable, and contingency routes are being prepared.”
Officials from the Ministry of External Affairs also confirmed that Indian embassies in Tehran, Tel Aviv, and Doha are on alert, offering assistance to stranded passengers and liaising with local aviation authorities. Meanwhile, the DGCA has requested airlines to submit revised summer schedules to reflect the current routing constraints and avoid overbooking.

Fragile Ceasefire, Unstable Skies

While the temporary ceasefire between Israel and Iran has offered some hope for aviation recovery, the underlying volatility persists. Any escalation, particularly involving air or missile strikes on civilian aviation routes or ground installations, could lead to a prolonged closure of key airspace corridors.
In this turbulent situation, Indian carriers are caught between strategic safety imperatives and operational survival. Passengers, meanwhile, remain at the mercy of fast-changing flight statuses. Until a durable regional peace emerges — an outcome that appears distant — India’s westbound aviation ecosystem must brace for more turbulence in the weeks ahead.
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