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Iran war deals double blow to Indian airlines already hit by Pakistan airspace ban

Indian carriers face up to 4-hour longer flights and $8.75 billion weekly losses due to Middle East airspace closures and Pakistan’s ban on their airspace, industry experts say.

  • On March 10, Reuters reported Middle East airspace restrictions amid the Iran war have dealt another blow to Indian airlines, which face limited options after Pakistan banned their carriers last year.
  • With Pakistani, Iranian, Omani and Emirati airspaces shut, IndiGo’s six Boeing long-range jets leased from Norse Atlantic Airways must follow an European Union Aviation Safety Agency advisory, forcing longer Africa routings.
  • Cancellations and fuel spikes have hit Indian airlines hard, with over 1,600 flights canceled between 28 February and 3 March and aviation turbine fuel prices rising from $85–$90 to $150–$200 per barrel.
  • To offset rising costs, Air India will levy Rs 400 surcharge from 12 March and up to Rs 18,000 on some international fares, passing operational cost increases to passengers.
  • With sector losses already mounting, industry experts estimate a $8.75 billion weekly impact while HSBC warns seven days of cancellations could cut 1.2% off profit, as ICRA forecasts wider Rs 170–180 billion losses in 2025–2026.
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Iran war deals double blow to Indian airlines already hit by Pakistan airspace ban

Airspace restrictions in the Middle East amid the Iran war have dealt another blow to Indian airlines, which count the region as ​a crucial corridor for flights to Europe and the U.S. since Pakistan banned Indian carriers from its airspace last year.

·United Kingdom
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Reuters broke the news in United Kingdom on Tuesday, March 10, 2026.
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