Parliament Question: Impact of US-Iran Conflict in Civil Aviation Sector

GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA UNSTARRED QUESTION NO. : 792 ( TO BE ANSWERED ON THE 23rd July 2026 ) IMPACT OF US-IRAN CONFLICT IN CIVIL AVIATION SECTOR 792. SHRI ANTO ANTONY Will the Minister of CIVIL AVIATION be pleased to state:- (a) whether the Government has assessed the impact of the recent US-Iran conflict on civil aviation operations in the country and if so, the details thereof; (b) the number of flight cancellations, diversions and delays caused due to airspace restrictions arising from the US-Iran conflict, airline and airport-wise; (c) whether the Government has estimated the revenue loss suffered by Indian airlines due to the disruption caused by the US-Iran conflict and if so, the details thereof; (d) whether the Government has assessed the additional operational costs incurred by Indian airlines due to rerouting, increased fuel consumption and extended flight durations and if so, the details thereof; (e) whether any financial or operational support has been extended to Indian airlines affected by the disruption and if so, the details thereof; and (f) the measures taken by the Government to minimise disruption to passengers and aviation services arising from geopolitical conflicts affecting international airspace? ANSWER Minister of State in the Ministry of CIVIL AVIATION (Shri Murlidhar Mohol) (a): Directorate General of Civil Aviation (DGCA) has issued multiple advisories to address and ensure the safety of passengers, crew, and aircraft evolving from the risks arising from the West Asia conflict. These advisories provide operational guidance on affected airspace, including Notice to Airmen(NOTAM), identification of high-risk areas, Flight Information Region (FIR) boundaries, and impacted countries, enabling operators to plan safe routing after conducting comprehensive Safety Risk Assessments. (b): The US-Iran conflict has significantly disrupted international flight operations due to airspace restrictions leading to widespread cancellations (approx. 26,000 flights by Indian carriers till 20 July 2026), along with considerable diversions and delays across airlines and airports. (c) & (d): As informed by Indian carriers, re-routing of flights has led to increased flight durations and higher fuel consumption, resulting in additional operational costs for airlines. The extent of such costs depends on route diversion, duration and prevailing fuel prices. Further, as informed, airlines are incurring significant revenue losses due to the ongoing crisis. Airlines are, however, taking necessary measures to mitigate the impact while ensuring continuity of operations. (e): The Government has taken several measures to support the aviation sector and help keep air travel affordable, which include: (i) One-time budgetary support not exceeding Rs. 10,000 crores for Oil Markreting Companies (OMCs) to provide Aviation Turbine Fuel (ATF) price stablisation support to the Scheduled Indian Airlines due to exceptional fuel price volatality arising from the West Asia crisis.; (ii)For domestic operations, ATF prices were capped at a maximum increase of 25% over the 1 March 2026 base price, effective from 1 April 2026 for the months of April and May 2026. (iii) Partial deferment of airport landing and parking charges for domestic operations at major airports along with a 25% rebate in such charges at Airports Authority of India (AAI) airports. (iv) Approval of ECLGS 5.0 with a total corpus of Rs. 18,100 crore, including Rs. 5,000 crore earmarked for Indian airlines, to provide liquidity support. (v) Reduction of Value Added Tax (VAT) on ATF at Delhi (from 25% to 7%) and at Maharashtra (from 18% to 7%) for 6 months. (f): A 24*7 Passenger Assistance Control Room was established for real-time coordination and passenger support, while the Directorate General of Civil Aviation (DGCA) issued necessary safety advisories and operational guidance to airlines. Airlines were advised to facilitate refunds and rescheduling, and passenger assistance was strengthened through airport help desks and real-timetravel updates. The Ministry also worked closely with the Ministry of External Affairs to address emerging requirements relating to Indian carriers and Indian nationals in the region. The Indian Mission in Riyadh, in coordination with Indian Missions in Bahrain, Iraq, Kuwait, Oman, Qatar and the UAE, facilitated the transit of affected individuals through Saudi Arabia. ******