Air travel out of India has entered a phase of volatility, as airlines navigate a rapidly evolving situation in West Asia. With key air corridors disrupted, carriers are being forced to reroute flights, stretching journey times and tightening available capacity.

The immediate fallout has been a sharp spike in international fares — particularly on Europe-bound routes — and a visible shift in travel demand toward Southeast Asia and alternative domestic destinations.

“The closure of Middle Eastern airspace has affected Indian aviation significantly, coming as it does on top of the existing shutdown of Pakistani airspace,” Sanjay Lazar, aviation expert, told The Core.

“The Middle East corridor is India’s largest westbound route, and this will heavily impact IndiGo and Air India until hostilities cease and airspace over Iran reopens.”

What The Fare Data Shows

The disruption was most evident in early March, when fares on European routes rose by more than 40% week-on-week for bookings made between March 1 and March 5, for travel in the following two weeks.

The surge was concentrated in mid-March departures, pointing to a short-term mismatch between demand and available seats as flights were rescheduled and rerouted.

Airlines are being forced to cancel or cut certain routes — especially those that are less profitable or operationally difficult — because longer flying times are stretching aircraft, crew and costs. Indian carriers cancelled 350+ flights immediately after airspace closures. Air India has cancelled 2,500 flights in three weeks and cut Middle East capacity significantly

A comparison of fares shared by online travel platform Cleartrip between February 28 — before the conflict escalated — and March 19 highlights just how sharply prices have moved.

On international routes, the increase is stark.

• Delhi–London fares have jumped from Rs 35,000–Rs 45,000 to Rs 85,000–Rs 1.2 lakh
• Mumbai–New York tickets have surged from Rs 55,000–Rs 70,000 to as high as Rs 1.3–Rs 2.25 lakh
• Bengaluru–Frankfurt fares have climbed from Rs 40,000–Rs 50,000 to Rs 1.5–Rs 1.9 lakh

Even shorter international routes are feeling the strain. Hyderabad–Dubai fares have more than doubled — from Rs 12,000–Rs 15,000 to Rs 40,000–Rs 50,000 — reflecting cancellations and capacity constraints.

By contrast, routes less dependent on West Asian airspace, such as Delhi–Bangkok, have seen more moderate increases, rising from Rs 10,000–Rs 12,000 to Rs 18,000–Rs 22,000.

This trend reflects a broader supply squeeze. More than 700 flights were cancelled during the initial phase of the conflict, tightening capacity and pushing fares sharply higher.

Domestic routes, however, tell a different story. Fare increases have been gradual rather than dramatic.

• Mumbai–Delhi fares have risen from Rs 4,500–Rs 5,500 to Rs 5,800–Rs 6,500
• Bengaluru–Delhi fares now range between Rs 7,200–Rs 8,800, up from Rs 6,000–Rs 7,500

While international fares have surged — sometimes doubling within weeks — domestic prices have edged up modestly.

Passing On The Costs

As rerouting stretches flight times, airlines are also passing on rising operational costs to passengers through fuel surcharges.

IndiGo has introduced a surcharge ranging from Rs 425 to Rs 2,300 across routes, while Air India has added Rs 399 on domestic tickets. Air India Express and Akasa Air have followed with similar measures.

International passengers are now paying additional charges ranging from $10 to $200, depending on the route.

“These diversions have already added around 20% to operating costs, with landing and crew expenses adding another 10%,” Lazar said. “If the conflict prolongs and Brent crude crosses $100–120 a barrel, aviation fuel prices will spike further, pushing ticket prices even higher.”

A Shift In Travel Plans

The impact, however, is not uniform across destinations.

Fares to Greece (+64.5%), Turkey (+58.7%), and Spain (+45.5%) have risen sharply, while prices to the United States have increased more moderately. In contrast, fares to Austria, Switzerland, Germany, and France have actually declined, suggesting a shift in demand as travellers reconsider plans.

Travel platforms say this behavioural change is already visible.

“With the situation in West Asia becoming more complex, we’re seeing a clear shift toward Southeast and Central Asia,” Gaurav Patwari, Chief Business Officer at Cleartrip, told The Core. “Destinations like Almaty, Thailand, and Malaysia are gaining traction due to visa ease and shorter travel times.”

He added that Bali, Colombo, Vietnam, and the Philippines are emerging as summer favourites, with bookings to the Philippines up more than 160% year-on-year.

This redirection is also reshaping domestic travel.

“Last summer was dominated by traditional hill stations like Manali and Ooty,” Patwari said. “This year, travellers are exploring more diverse destinations.”

Jaisalmer has seen bookings surge 300%, while places like Coorg and several northeastern cities are witnessing strong growth.

A Fragile Equilibrium

Despite these shifts, the domestic market remains relatively insulated for now.

Pakistan has extended its airspace restrictions on Indian aviation until April 24, affecting a wide range of aircraft operated by Indian carriers. Combined with closures in West Asia, this is adding up to significantly longer routes.

“Overall, the dual impact of Middle East and Pakistan airspace closures could increase flight times by three to four hours,” Lazar said.

For now, the divide is clear. International travel—especially to Europe—remains highly sensitive to disruption, with fares reacting sharply to short-term shocks. Domestic travel, meanwhile, continues to see steady demand, even as rising fuel costs begin to nudge prices upward.