Indian Airlines Hit by Mounting Disruptions as Middle East Conflict Triggers Widespread Flight Cancellations, ETTravelWorld

Indian airlines are emerging among the worst affected outside West Asia as escalating conflict and airspace closures across the Middle East trigger widespread cancellations and longer flight paths.

More than 350 flights were cancelled on Sunday as congestion mounted at airports handling diverted traffic, according to people familiar with the matter, as reported by Bloomberg. Disruptions are expected to continue into Monday, marking a third straight day of cancellations.

Air India, IndiGo cancel and reroute international services

Air India said flights to the US east coast, including John F. Kennedy International Airport and Newark Liberty International Airport, would operate with technical halts in Rome. However, services to Birmingham, Zurich and Copenhagen were cancelled.IndiGo also suspended select international flights operating through Middle Eastern airspace through March 2. The airline also cancelled services to London, Manchester, Amsterdam and Copenhagen.

The strain is compounded by the fact that Indian airlines have been unable to use Pakistani airspace since mid-last year following a brief conflict. While rerouting over Iran had added over two-and-a-half hours to US-bound flights, alternative routes that bypass the entire Middle East would take even longer, people cited above said.

This places Indian carriers at a disadvantage compared to some European and North American airlines that retain limited corridors via Turkey and Egypt.

High exposure to Middle East routes

Indian airlines have significant exposure to the Middle East, home to a large Indian diaspora and a key transit hub for connections to Europe and North America.

According to Bloomberg Intelligence, SpiceJet has its entire international schedule for March exposed to the Middle East. Air India Express has about 60 per cent exposure, while IndiGo’s exposure stands at 41 per cent. Air India’s full-service international operations have a lower exposure at 8 per cent.

Some domestic services have also been impacted, people familiar with the situation said.

Shares of SpiceJet fell as much as 9.2 per cent in Mumbai on Monday. IndiGo dropped nearly 8 per cent before trimming some losses.

As per Bloomberg Intelligence, the disruption is particularly painful for Indian carriers as international routes offer a natural currency hedge against rupee depreciation, at a time when crude prices are rising due to the conflict.