Indian Airlines Seek Relief Amid Global Travel Chaos Caused by US-Israeli War

Indian airlines have sought relief from the government after the escalating US-Israeli war threw global travel into chaos and sent oil prices skyrocketing. The conflict has led to extensive airspace closures and restrictions affecting some of the busiest airport hubs of the world. The civil aviation ministry had earlier said it was closely monitoring airfares to ensure that there was no undue surge in ticket prices. According to an update shared by CNBC-TV18, airlines have met with civil aviation minister Rammohan Naidu to flag the growing financial strain caused by the West Asia conflict. Carriers are reportedly seeking relief on excise duty or GST to offset the rising operational costs. They cite multiple pressure points including higher fuel and insurance costs. Reduced flights and disruptions have also pushed expenses higher, and flights from India to West Asia are often operating empty on one leg. An update shared by PTI indicates airlines are planning to operate 50 flights from the region on Monday. The Civil Aviation Ministry said Indian carriers cancelled 279 international flights on Sunday due to the Middle East conflict. Only 49 flights were operated during the day — scheduled from key cities in the Middle East, including Dubai, Abu Dhabi, Ras Al Khaimah, Fujairah, Muscat and Jeddah. Airspace closures over many Middle Eastern nations have forced planes into longer, less efficient routes that require additional fuel and flight crew. Indian airlines also contend with a long-standing closure of Pakistani airspace that is now forcing them to take a massive ‘u-turn for destinations in Europe and North America. Longer flights also require additional catering and higher aircraft maintenance. The war has also driven fuel prices up to multi-year highs amid fears of tighter supply and prolonged disruptions to shipments. Oil jumped 20% in early trading on Monday to hit its highest since July 2022. Aviation turbine fuel prices have also risen over the past few days as the Strait of Hormuz became impassable for tankers. Indian airlines are therefore flying longer routes using ‘more expensive’ fuel amid the recent chaos. Stranded passengers have been paying huge sums of money to escape the Middle East, with last-minute dashes to the airport, overland trips to less impacted hubs and fighter jets at times escorting passenger ⁠planes out. Recent reports indicate that insurance companies have slapped steep premiums on any aircraft entering the region. Airline executives told The Hindu last week that additional war-risk premium works out to about Rs 70 lakh per return flight (at an estimated value of Rs 700 crore for a narrow-body aircraft such as an Airbus A320). This translates to an additional cost of around Rs 20,000 per passenger. The amount could more than double (up to Rs 2 crore) for wide-body aircraft such as the Boeing 787 Dreamliner . The war has also led to intense one-way traffic for airlines — with packed ‘evacuation’ flights but almost no travellers heading into West Asia. They are also grappling with under-utilisation of planes — with hundreds of flights being cancelled daily. Airlines are unable to plan ahead or sell tickets in advance as many airports in the Gulf operating on day-to-day slot allocations.