Middle East Airspace Disruptions Shift Indian Outbound Demand

Airspace disruptions in the Middle East have affected flight schedules, airline capacity and traveller behaviour, but Indian outbound demand has not disappeared. Instead, many travellers are shifting towards Asian destinations such as Vietnam, Thailand, Malaysia, the Philippines, Japan, Australia and New Zealand. More than 3 million scheduled seats were reportedly cut between May and July due to regional disruptions, with Gulf carriers among the most affected. Since these airlines carry a large share of India’s long-haul connecting traffic, rerouting pressure remains a concern. However, industry expectations suggest that corporate travel may recover within 6–8 weeks once clarity improves, while leisure could take two to three months.