Key facts
- The Iran war has caused airspace disruptions, forcing Indian airlines to take longer, more fuel-intensive flight routes.
- Fuel prices have surged due to the conflict, significantly increasing operating costs for airlines.
- Flight times on some routes have increased by 15-40%, with regional sectors doubling in duration.
- Over 170 flights from India have been cancelled, impacting thousands of passengers.
- Airlines are passing increased costs to consumers via higher ticket prices and fuel surcharges.
The ongoing conflict involving Iran has severely disrupted India's aviation sector, forcing airlines to reroute flights, cancel services, and contend with soaring fuel prices. This turbulence is undermining the government's strategy to boost regional connectivity through aviation.
Indian carriers are particularly affected by the need to avoid airspace over Iran due to the war, leading to significantly longer flight times and increased fuel consumption. Some routes have seen durations increase by 15-40%, with regional sectors experiencing even more drastic increases. Compounding these issues, Indian airlines are also barred from flying through Pakistani airspace, necessitating further costly detours to Europe and North America.
The geopolitical crisis has also sent global oil prices, including aviation turbine fuel (ATF), to new highs. Fuel typically constitutes 30-40% of an airline's operating expenses, a figure that can rise to nearly 45% in India due to high taxes. This dual pressure of longer routes and higher fuel costs is severely impacting airlines, which typically operate on thin margins.
As a result, airlines have begun passing these increased costs onto passengers through fuel surcharges and higher ticket prices, especially on long-haul international routes. This is expected to affect leisure and non-essential travel demand. Beyond passenger impact, the disruptions are straining airline operations, leading to cancellations and stranded passengers. As of Saturday, at least 170 flights from India had been cancelled, with airports on alert to manage diversions and unscheduled landings. The Ministry of Civil Aviation has advised carriers to continuously monitor airspace advisories and route restrictions.