The ongoing conflict involving Iran is creating fresh challenges for Indian airlines already struggling with restricted flight routes. With Pakistan banning Indian carriers from its airspace, airlines now face longer and more expensive routes to reach Europe and the United States.
Airspace restrictions across the Middle East have forced airlines to cancel or reroute several international flights.
According to aviation data from Cirium, major Indian carriers Air India and IndiGo did not operate 64% of their 1,230 scheduled flights to the Middle East, Europe, and North America over the past 10 days.
Experts say the situation is particularly difficult for Indian airlines because they are already barred from flying over Pakistan.
“It is a double whammy for Indian airlines which fly international routes,” said aviation expert Amit Mittal.
Pakistan airspace ban adds pressure
Pakistan banned Indian airlines from its airspace in April last year following military tensions between the two neighboring countries.
Because of the ban, flights from India to Europe or the United States must already take longer alternative routes.
Now, the Iran conflict has further restricted airspace in the region, leaving airlines with very limited routing options.
Analysts warn that the situation could significantly affect airline profitability.
According to estimates from HSBC, seven days of flight cancellations in affected regions could reduce airlines’ annual profit-before-tax by about 1.2%.
The bank said ongoing geopolitical tensions in the Middle East would likely place a “significant burden” on Indian carriers.
IndiGo faces unique challenges
IndiGo is experiencing additional complications due to aircraft leasing arrangements.
The airline operates six long-range aircraft leased from Norse Atlantic Airways.
Because the planes remain registered in Norway, they must follow safety advisories issued by the European Union Aviation Safety Agency.
Those guidelines advise airlines to avoid flying over several countries, including:
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Iran
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Iraq
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Israel
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Kuwait
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Lebanon
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Qatar
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United Arab Emirates
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Saudi Arabia
As a result, some IndiGo flights are being rerouted via Africa, increasing travel times by up to two hours, according to data from Flightradar24.
The rerouting has also created unexpected operational problems.
An IndiGo flight from Delhi to Manchester was forced to return to Delhi after spending 13 hours in the air when authorities in Eritrea refused airspace access due to confusion about the aircraft’s registration.
A separate flight traveling from London to Mumbai also faced similar issues and had to divert to Cairo.
IndiGo later said the incidents occurred because of last-minute airspace restrictions.
The disruptions come at a sensitive time for IndiGo.
The airline’s chief executive Pieter Elbers stepped down this week following operational issues that had already drawn public and government scrutiny late last year.
Air India adjusts routes to meet demand
Meanwhile, Air India announced it would operate 78 additional flights between India, Europe, and the United States to meet travel demand during the Iran crisis.
However, longer routes are increasing travel times.
For instance, an Air India flight from Delhi to New York recently stopped in Rome, extending the journey to nearly 22 hours.
Before the Iran conflict, the airline could fly through Iraq and Turkey and reach the U.S. in around 17 hours without stops.
In comparison, a flight operated by American Airlines on the same route took about 16 hours, traveling via Pakistan.
Rising costs for airlines
Longer routes also mean higher fuel consumption, increasing operating costs for airlines.
This comes at a time when global oil prices have already risen following the United States–Israel conflict with Iran.
Air India, which is owned by Tata Group and Singapore Airlines, has previously estimated that the Pakistan airspace ban could cost the airline $600 million annually.
The airline reported $433 million in losses last year, adding to the financial pressure.
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