Middle East Chaos Sends International Airfares Into Tailspin; Air India Leads The Plunge
Airspace closures may force costly detours for airlines; fuel uncertainty across global routes
A mix of geopolitical tension and domestic aviation anxiety is pushing international airfares into a tailspin — and Air India is leading the plunge.
In the wake of escalated Iran–Israel conflict, the fresh booking data from major travel portals shows sharp fare declines on international routes for upcoming weekends (June 28–29 and July 5–6). But while most carriers have made only marginal adjustments, Air India has slashed prices dramatically, making it the cheapest option on nearly every key route.
Air India is slashing fares across key international routes, as geopolitical shocks and safety concerns trigger a domino effect on outbound demand. On long-haul routes, Air India is leading the charge, offering Delhi–Paris tickets for as low as ₹21,785—nearly ₹25,000 cheaper than competing European carriers. Delhi–New York fares on Air India start at just ₹28,678, while competitors like American Airlines continue to hover around ₹67,000.
Meanwhile, the Ahmedabad–Gatwick crash has visibly hit Air India’s brand, with a reported 30–35% dip in fresh bookings. In response, the airline appears to be aggressively discounting to recover passenger volumes and retain critical international slots.
Even short-haul markets are in flux. On the Delhi–Dubai route, fares across carriers have dropped below ₹10,000, with players like Etihad and Air Arabia undercutting even low-cost Indian rivals. Delhi–Hong Kong flights are available for under ₹14,000 on IndiGo, far below Air India’s ₹46,000 listing.
The ongoing conflict in the Middle East has led to the closure of Iranian and surrounding airspace, forcing airlines to reroute via longer, costlier flight paths over Central Asia, the Caspian Sea, or the Mediterranean.
These detours may cause increased fuel burn and operational costs and may led to delays in long-haul westbound flights. While no direct route cancellation have been reported yet, the situation has injected operational uncertainty into global aviation planning — just as passenger confidence is already shaken by recent crash headlines.
