IndiGo, the country’s leading airline by market cap, on Wednesday said it cancelled over 500 flights to the Middle East and selected international destinations from February 28 to March 3 due to evolving airspace restrictions over Iran and other Gulf countries. In a regulatory filing, the airline said it will continue to closely monitor the revenue environment arising from this situation.
The Civil Aviation Ministry said on Tuesday that 1,221 flights by Indian carriers and 388 flights by foreign carriers had been cancelled till March 3 due to the ongoing situation.
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Key transit hubs such as Dubai, the world’s busiest international airport hub, along with Abu Dhabi in the United Arab Emirates and Doha in Qatar, were either shut or operating under severe restrictions, as much of the region’s airspace remained closed following US and Israeli strikes that killed Iranian Supreme Leader Ali Khamenei.
Escalating tensions pose a clear negative for travel and tourism stocks. Flight disruptions, rerouting and cancellations can raise operating costs for airlines, particularly fuel and crew expenses. At the same time, heightened geopolitical uncertainty could dampen travel demand, triggering booking cancellations and slower new reservations, which may pressure revenues and near-term earnings visibility across the sector.
Last week, Dubai International Airport sustained damage during Iran’s attacks, while airports in Abu Dhabi and Kuwait were also struck. Thousands of flights across the Middle East have been disrupted, according to data from flight-tracking platform FlightAware.
IndiGo shares have declined 11% over the past five sessions, while SpiceJet plunged 7.5% in the previous trading session alone. Meanwhile, Ixigo has fallen more than 5% in the last five days, and Easy Trip Planners has shed over 8% during the same period.
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