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US-Iran conflict has major impact on Indian airlines, 26% drop in international passengers
Samira Vishwas | August 21, 2026 11:24 AM CST

The impact of the ongoing US-Iran conflict in the Middle East since February 2026 is now evident on Indian air travel as well. The conflict has caused major changes in air routes, flight operations and passenger numbers. As per the April to June 2026 quarter data, the total number of international passengers arriving and departing from India has decreased by 10.5 percent. This number has come down to around 17 million i.e. 1.7 crore passengers. Indian Airlines has been the most affected by this decline. On the other hand, some foreign airlines have expanded their operations in India, taking advantage of the changing air routes and passenger demand.

26% decline in international passengers of Indian Airlines
DGCA figures show a worrying situation for Indian airlines. The number of international passengers traveling by Indian airlines has decreased by 26 percent. Especially Air India Group i.e. Air India and Air India Express have been hit hard. The number of international passengers of both the airlines has decreased by about 35 percent. Apart from instability in the Middle East, the decrease in international flights after the plane crash in Ahmedabad in June 2025 is said to be behind this decline. Declining number of flights has affected both passenger choice and available connectivity.

Difficulty increased for IndiGo and Air India
IndiGo, one of the country’s major airlines, has also been affected by the decline in international passengers. IndiGo’s international passenger numbers fell 15.4 percent to 3.34 million from 3.95 million in the previous year. On the other hand, Air India Group figures show a bigger decline. Increased uncertainty on air routes to and from the Middle East, changes in flight routes and airspace restrictions have affected the operations of Indian airlines. The closure of Pakistani airspace has also caused difficulties for Indian airlines. Air India and IndiGo, in particular, have had to reroute flights, increasing time, fuel and operational costs.

How did foreign airlines benefit?
While Indian airlines are losing international passengers, some foreign airlines have strengthened their position in India’s international travel market. The number of Indian passengers traveling with Emirates increased by 7 percent to 1.48 million. Etihad Airways has not benefited much, but Western airlines such as Lufthansa, Swiss and British Airways have increased flight operations to and from India. Lufthansa’s passenger numbers reached around 3.70 lakh, while British Airways registered over 2.90 lakh passengers. This shows that passengers are now shifting more towards safer and easier alternative international routes.

Why did Middle East conflict change air routes?
The US-Iran conflict has increased uncertainty on some important air routes in the Middle East. Airlines have had to avoid some routes or take longer alternate routes for security reasons. Apart from this, due to the closure of Pakistani airspace, some flights between India and Europe and Western countries have to take a longer route. As a result, both flight time and fuel costs can increase. Challenges like connecting flights, schedule changes and ticket availability have also arisen for passengers. This whole situation is having a direct impact on the revenue and profitability of the airlines.

Struggle still a big challenge for airlines
Since the beginning of the ongoing conflict in the Middle East, the situation has been constantly changing. Initially there was a direct military conflict between Israel, America and Iran. Iran launched missile attacks on Israel and also targeted American military bases in Arab countries. Over time, the focus of the dispute has moved beyond the nuclear program to areas of strategic importance such as the Strait of Hormuz. If this situation continues for a long time, global air routes and especially international flights connected to India may be more affected. Current statistics show that the blow of the geo-political conflict has not been limited to the military and the economy, but has also reached Indian airlines and millions of air passengers.


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