₹500 crore hit: The US-Iran war grounds Indian airline profits.

₹500 crore for carriers.In a tweet on Saturday, the Directorate General of Civil Aviation said Indian airlines cancelled around 410 flights on 28 February and 440 on 1 March due to security concerns in parts of the Middle East airspace, impacting Gulf and long-haul routes beyond the region, including services to London Heathrow and Canada.West Asia accounts for 15-20% of IndiGo’s daily revenue, according to at least one sell-side analyst. “Flight cancellations due to the West Asia crisis will have an impact on airline revenues.

Any sustained disruption, especially on international routes, directly affects volumes," said Gagan Dixit, senior vice-president oil and gas and aviation at Elara Securities."IndiGo's roughly 30% of its capacity share is international operations, and two-thirds of this is linked to the Middle East. So the airline has meaningful exposure to the region, around 15-20% of daily revenue is exposed,” he added.“AIX is also heavily exposed to West Asia, but it is difficult to quantify the impact as it is privately held and does not disclose financials,” said Dixit.Experts said the disruption could translate into losses of ₹500 crore or more after factoring in lost ticket sales, passenger refunds, and rescheduling costs, even as additional expenses from longer flight routings push operating costs higher.“A ballpark calculation suggests a ₹40,000 round-trip ticket cost, about 450 flight cancellations and roughly 200 seats per flight.

This comes to approximately ₹500 crore in direct revenue loss for carriers,” said Mark D. Martin, aviation expert and founder of Gurugram-based Martin Consulting.With a direct impact of ₹500 crore, there could be a much larger impact due to a potential jump in oil prices, which