Major Disruptions: Indian Airlines Suffer Amid Gulf Conflict

Indian Airlines Face Severe Impact from Gulf Conflict The ongoing regional conflict in the Gulf is wreaking havoc on Indian airlines, leaving them grappling with **significant operational challenges**. As tensions escalated in late February 2026, particularly between **Iran and Israel**, airlines that primarily service the Gulf routes have found their operations severely disrupted. With these routes forming the backbone of international travel for Indian carriers, the implications are profound.

According to industry sources, approximately 25% of Air India Express's fleet, which consists of 115 aircraft, is currently grounded. This situation reflects a broader trend impacting multiple airlines in India. The grounding is not officially mandated; rather, aircraft are flying infrequently—about every three to four days—to maintain serviceability due to a lack of available parking stands at airports. This idle status is a stark contrast to the usual operational frequency, severely impacting revenues and connectivity for passengers.

Gulf Routes: The Lifeblood of Indian Airlines Traditionally, air travel between India and the Gulf region has been a crucial market, catering to the **over 9 million Indians** residing across Gulf Cooperation Council (GCC) countries. This demographic has long made destinations like the **United Arab Emirates**, **Saudi Arabia**, **Bahrain**, **Qatar**, **Oman**, and **Kuwait** key players in international aviation for Indian carriers. Unfortunately, as military activity surges and flight restrictions increase, Indian airlines faced **approximately 2,600 flight cancellations** in just the first nine days following the February 28 escalation.

While flights to Oman have remained consistent, major hubs such as Dubai, Doha, and Abu Dhabi continue to experience severe disruptions. These destinations, which are typically bustling with traffic, have seen a drastic reduction in flights, impacting not only airlines but also passengers who rely on these routes for travel to further destinations like the U.S., Canada, and Europe. In 2025 alone, nearly 40 million passengers traveled between India and the Gulf, making it the largest international aviation corridor for Indian airlines.

Financial Strain on Airlines Amid Rising Costs The financial implications of the ongoing conflict are compounded by rising operational costs. **Jet fuel prices** in India have surged by **$50 per kilolitre** since January, hitting **$150 per kilolitre**. Additionally, airlines operating Gulf routes are facing increased costs associated with **war-risk insurance premiums**, estimated at around **₹18,000 per seat**. While airlines have implemented a fuel surcharge of up to **₹400** on domestic routes and higher for international flights, these adjustments barely cover **10% to 12%** of the ticket fare, leaving carriers to absorb the brunt of rising costs.

Airlines like IndiGo, which previously relied heavily on Gulf routes for international operations—accounting for 35% to 40% of their international flights—are now seeing many of their aircraft idle overnight. This shift from frequent back-and-forth flights to parking has added to the economic strain, as it is more expensive to maintain aircraft in the air than to keep them grounded.

Operational Challenges and Market Dynamics The unpredictable nature of flight schedules due to security threats, coupled with last-minute slot allocations at airports, has left airlines with insufficient time to sell seats effectively. This has further exacerbated the underutilization of aircraft, a situation that is especially dire in a market already pressured by rising costs and cancellations. Operational efficiency has been compromised, and airlines are now forced to navigate a complex landscape of fluctuating demand and rising expenses.

Air India Express, initially established in 2004 to serve the low-cost travel market primarily for migrant workers between southern India and the Gulf, has had to adapt significantly since its acquisition by the Tata Group. While the airline continues to operate a substantial number of flights to Gulf destinations—around 30% of its total flights—the ongoing conflict has forced it to reconsider its operational strategies.

What Lies Ahead for Indian Airlines? Looking ahead, the situation remains fluid, and industry experts suggest that Indian airlines will need to brace for continued challenges as the Gulf conflict evolves. The unpredictability of the region's geopolitical landscape will likely influence operational decisions, flight schedules, and ultimately, passenger travel patterns.

As airlines grapple with these operational hurdles, it is crucial for them to develop contingency plans that can adapt to changing circumstances. Additionally, the focus may shift towards enhancing domestic operations to offset losses from international routes, especially in light of growing travel demand within India itself.

In conclusion, the Gulf conflict is not just a regional issue but one that has far-reaching implications for Indian aviation. The industry must remain agile, responsive, and innovative to navigate these turbulent times successfully. Stakeholders and passengers alike will be closely monitoring developments, as the repercussions of this conflict continue to unfold in the coming months.