Indian airlines have been hit by the ongoing West Asia conflict due to airspace restrictions. Air India Express and SpiceJet are the worst impacted as they deploy most of their capacity to the Gulf.  

Here is a look at how international passenger carried, seat availability and frequency reduced due to conflict as the domestic players stare at worst earnings in FY26. The data shows that Q1FY27 is also expected to be hit, with April 2026 being the most.

Data 1: Impact on the International seat capacity of domestic carriers (Jan-April 2026 Vs Jan-April 2025 (Source: OAG)

• Seat capacity of Air India Express and SpiceJet was the most impacted by the Gulf crisis
• Akasa saw a growth as it started deploying major capacity in FY26.

Data 2: International frequency impacted due to the Gulf crisis (Source: OAG)

The international frequency of aircraft by various airlines saw a drop in March and April, with continued airspace restrictions over the conflict zone in West Asia.  

• The international frequency of almost all domestic carriers was nearly cut by 50% in April 2020 over January 2026.
• The first month of Q1FY27 has been the worst-impacted, with continued revenue constraints.     

Data 3: Passengers carried to international destinations during the first three months (Source: DGCA)

The numbers dropped drastically in March as airspace restrictions were placed over the Gulf. This is likely to impact the revenue of Q4FY26 with the worst March numbers in the past few years.

• Air India Express and SpiceJet have been the worst impacted as their network is primarily focused on West Asia countries that have a sizeable Indian population.
• Air India has the least impact as its low-cost arm, Air India Express, took a hit.
• IndiGo and Akasa saw 50% cut in passenger flown.

Data 4: Passengers carried by Indian domestic carriers in Q4FY26 Vs Q4FY25 (Source: DGCA)

Passenger traffic was impacted, but comparatively less as more international services were launched by domestic airlines in FY26.

• Akasa saw a growth as it expanded its international network only in FY26, once its Boeing 737 Max deliveries.   
• IndiGo did not see a steep impact in the quarter for January and February 2026, which offered some respite.  

Published on: Apr 27, 2026 5:16 PM IST