Iran tensions hit India’s outbound travel; inbound operators brace for impact

Varuni Khosla
4 min read2 Mar 2026, 03:12 PM IST
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Passengers wait for news about flights at Terminal 4 at London Heathrow Airport on Sunday. Photo: AFP
Summary
As Middle Eastern transit hubs face unprecedented gridlock, Indian tour operators report a surge in cancellations and postponements that threaten to stall the industry's recovery.

Rising geopolitical tensions in Iran and across the Middle East have triggered airspace shutdowns, flight rerouting, and schedule changes, disrupting outbound travel from India. While commercial aviation hasn’t come to a complete halt, airlines have adjusted flight paths and frequencies, creating uncertainty for travellers connecting via Middle Eastern hubs.

The impact has been immediate. A father and daughter from Gurugram, aged 65 and 35, were scheduled to fly to Egypt on Saturday night for a long-planned holiday. Hours before departure, escalating tensions in West Asia led to airspace closures along key transit routes. The two decided to postpone their trip by at least three months. Travel agents say they are now fielding many similar calls from Indian travellers reassessing their international plans. Meanwhile, a 20-member government delegation scheduled to travel from Delhi to Europe has been put on hold as flight disruptions intensify.

The Middle East accounts for 41% of all international flights from India as of 2023 according to a report by industry body IATA. Dubai alone handles 5% of India's total international departures, according to the same report, titled ‘Value of Air Transport to India’.

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Radhika Khanijo, founder of Delhi-based luxury travel company Welgrow Travels, said, “All our outbound passengers travelling to Europe were flying via the Middle East on Emirates, Etihad or Qatar Airways. For the next three to four days, we have asked all our clients not to continue with any plan to travel. Most have either postponed their plans or cancelled altogether. My business is largely outbound, so the impact will be significant.”

Khanijo said airlines will have to offer free cancellations, similar to the covid period, and are already arranging hotel stays for stranded passengers. “The overall travel industry will be affected. For now, it’s a wait-and-watch situation and we’re advising clients to hold off travel until next week or so,” she said. She added that since Welgrow primarily works with luxury hotels such as Four Seasons and Mandarin Oriental, partners have been accommodating on postponements and refunds.

Inbound operators next?

Inbound travel is also starting to feel the strain, particularly because a large share of traffic into India transits through Middle Eastern hubs. According to DGCA data, more than 3.1 million passengers traveled between India and the UAE in the September quarter of 2025. This averages out to about 35,000 daily travelers.

Rajeev Kohli, joint managing director of Gurugram-based inbound travel company Creative Travel, said,“We have already received a few cancellations, not because the people don't want to come, but simply because they physically cannot. But we are hopeful as the week has just started and tensions could ease up. Cancellations will happen though because people simply cannot travel right now. Without the Middle Eastern airlines, a large portion of the traffic has stopped. We will get a better sense once the global travel industry starts work. Hoping for the best.”

He added, “The sudden war in the Middle East is not what the global tourism industry needs right now, especially India and the rest of Southeast Asia. Asia in general had not bounced back to the pre-covid numbers in any real sense, barring Japan. And this war just crushes the recovery even more, especially for India, which is heavily dependent on the Middle Eastern carriers for airlift in and out of the country,” Kohli added. Closure of airspace in critical hubs such as the UAE and Qatar has choked incoming and outgoing traffic, he said, with last-minute flight changes proving cost-prohibitive.

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Dipak Deva, managing director of inbound travel agency TCI, said while disruptions are evident, demand may not disappear entirely. “India can gain as most holiday makers to the Gulf will look at other places and India could be a very good option for travellers. A lot of people travelling to Asia are using Middle Eastern carriers. Those who are using Air India and other airlines are largely unimpacted. While the wider conflict may push people to travel regionally rather than long haul, the summer may just be good for travellers looking to come to India,” he said.

At the same time, travel postponements to India have begun to rise and could increase over the coming days. “March and April are usually strong months because of the Easter holidays, but this will lead to some short term changes in plan. The next two months would be a little difficult for the entire travel industry and will depend on how long this continues,” Deva said.

Operators said connectivity through Middle Eastern hubs remains the biggest challenge, with the impact spreading across airlines, hotels, corporate travel and delegations. The biggest shock from a tourism standpoint was the attack on Dubai. Around 3,400 flights in the region have been cancelled, including over 400 a day to India, leaving about 300 passengers per flight stranded, so airlines’ first priority will be to get them out of the region. Early on Monday, Malaysia Airlines announced it, too, had suspended flights to and from Doha, Jeddah and Madinah till March 4 due to continued airspace closures in parts of the Middle East.

Deva of TCI added that India remains safe as a destination and flights and Indian carriers continue to operate flights. However, he does not expect the broader situation to improve immediately. “Stranded passengers will eventually be transported, but there is a heavy global reliance on Middle Eastern carriers. Tour operators are feeling that impact. For the next two months, it’s a wait-and-watch situation, with more cancellations likely,” he added.

Also Read | Mint Quick Edit | US dice roll on Iran: Quick victory or long-haul self-defeat?

About the Author

Varuni is a Senior Assistant Editor at Mint. She writes narratives on topics such as the business of hospitality companies, the art market, luxury and alcohol companies, business of sports, advertising, marketing, gaming, tourism and travel. Her work emphasizes clear communication and thorough research, keeping current trends in lifestyle and business with a focus-driven research process, incisive analysis, and a keen sensitivity to contemporary shifts, ensuring that every story she tells resonates with in-depth information.

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