- Indian airlines cancelled twenty-six thousand flights through July twenty, twenty twenty-six due to Middle East conflict.
- Rerouted international flights face eighty-six percent higher fuel expenses and significantly longer flight durations.
- The Indian government provided fifteen thousand crore in fuel subsidies and emergency credit line guarantees.
India’s airlines cancelled approximately 26,000 flights by July 20 after the US-Iran conflict forced carriers to avoid restricted airspace, the government told Parliament on July 23. The disruption has pushed up flying times, fuel consumption and operating costs on international routes.
Minister of State for Civil Aviation Murlidhar Mohol gave the figures in a written reply to the Lok Sabha. Congress MP Anto Antony had sought information about the disruption and its effect on Indian carriers.
The crisis began in late February. Airlines have since reported widespread cancellations, diversions and delays across airports and international routes.
Free toolB1/B2 Tourist Visa Stay Calculator onlineMohol said the restrictions had affected operations across the network.
“The US-Iran conflict has significantly disrupted international flight operations due to airspace restrictions leading to widespread cancellations (approx. 26,000 flights by Indian carriers till 20 July 2026), along with considerable diversions and delays across airlines and airports.”
The government has issued multiple DGCA advisories covering passenger, crew and aircraft safety. It also set up a 24×7 Passenger Assistance Control Room, which received over 400 complaints involving refunds and rescheduling.
Mohol said airlines were absorbing both lost revenue and higher costs while maintaining services where possible. Rerouted aircraft spend longer in the air and require more fuel.
“As informed by Indian carriers, re-routing of flights has led to increased flight durations and higher fuel consumption, resulting in additional operational costs for airlines. The extent of such costs depends on route diversion, duration and prevailing fuel prices.”
Gulf restrictions are forcing longer paths and larger fuel bills
Airlines have avoided high-risk areas over the Gulf, including airspace around Bahrain, Kuwait, Qatar and the UAE. Warnings from the European Union Aviation Safety Agency contributed to those route changes.
Europe- and U.S.-bound flights now use longer paths around restricted zones. The extra distance raises fuel use, crew expenses and aircraft operating costs.
Aircraft fuel expenses have surged 86% as flight durations lengthened and global oil prices rose. The closure of the Strait of Hormuz and Houthi attacks on tankers in the Red Sea also jolted energy markets.
Those pressures have lifted the cost of Aviation Turbine Fuel and added to the burden created by schedule changes. Mohol said airlines were taking measures to limit the disruption and continue operating.
“Further, as informed, airlines are incurring significant revenue losses due to the ongoing crisis. Airlines are, however, taking necessary measures to mitigate the impact while ensuring continuity of operations.”
Air India and IndiGo are reporting sharply different losses
Air India reported estimated losses exceeding ₹22,000 crore for the financial year ending March 31, 2026. The figure covers the airline’s reported loss position for that financial year.
IndiGo, operated by InterGlobe Aviation, reported a net loss of ₹238 crore for the June 2026 quarter. Some accounts cited the quarterly loss as ₹382 crore. The carrier had posted a profit of ₹2,161 crore in the same period last year.
Rahul Bhatia, Managing Director of IndiGo, linked the weaker result to fuel, currency and conflict-related pressures.
“A combination of fuel price escalation, adverse foreign exchange movement and the Middle East conflict impacted profitability during the quarter.”
The Air India and IndiGo figures cover different reporting periods. They do not provide a single combined loss total for all Indian airlines.
West Asia schedules have recovered partly, but remain below January
Airlines scheduled 9,474 flights to West Asia in July 2026. That was 3.3% below the pre-conflict level of 9,793 flights scheduled in January 2026.
The reduction has been especially difficult for states with large Gulf-based populations. Kerala recorded a 27% capacity drop, while Tamil Nadu and Telangana also saw fewer available flights.
| Measure | Figure | Period or comparison |
|---|---|---|
| West Asia flights scheduled | 9,474 | July 2026 |
| Pre-conflict schedule | 9,793 | January 2026 |
| July schedule gap | 3.3% | Below January 2026 |
| Kerala capacity change | 27% | Drop |
Passengers have faced sudden cancellations and schedule changes. Airfares on routes to West Asia and Europe have remained at “elevated levels.”
Migrant workers travelling between India and Gulf countries have faced reduced seat availability. Travellers connecting onward to Europe or the United States have also encountered longer itineraries.
The Centre is using fuel support and credit guarantees
The Centre announced one-time budgetary support of ₹10,000 crore for Oil Marketing Companies. The measure aims to cap increases in Aviation Turbine Fuel prices for Indian airlines.
The government also expanded the Emergency Credit Line Guarantee Scheme, ECLGS 5.0m, with ₹5,000 crore earmarked for the airline sector. The scheme is intended to provide additional financial support while carriers manage fuel and route-related costs.
Passenger assistance remains focused on refunds and rescheduling. Airlines continue to revise services as airspace restrictions affect route planning.
U.S. officials warned that closures could recur
The U.S. State Department issued a Worldwide Caution for U.S. citizens on July 22, 2026. It advised travelers to prepare for further “periodic airspace closures” in the Middle East.
The warning adds a fresh planning risk for airlines operating through or near the region. Carriers must account for possible route changes, longer flying times and increased fuel consumption as they publish schedules beyond July.
West Asia services have moved closer to pre-conflict levels, but the July total remains below the January benchmark. The next disruption could come from another airspace closure, rather than from a scheduled cancellation already counted in Parliament’s July 20 figure.
