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US-Iran Conflict Cuts Air India's International Traffic by 35%, IndiGo by 15.4%: DGCA Data

Written by: Team Angel OneUpdated on: 21 Aug 2026, 6:42 pm IST
The US-Iran conflict has decreased international carriage for Air India by 35% and IndiGo by 15.4%, as revealed by DGCA data.
US-Iran Conflict Cuts Air India's
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The US-Iran war has significantly affected international air travel, notably impacting Indian carriers more than their foreign counterparts, as per The Times of India report.  

The data from DGCA suggests a substantial decrease in passengers flying to and from India during the conflict's first full quarter that began on February 28, 2026. 

Decline in Passenger Traffic for Indian Carriers 

Between April 2026 and June 2026, international passenger traffic fell by 26% for Indian carriers. Air India Group experienced a 36% drop in their international carriage, decreasing from 43.3 lakh to 27.6 lakh passengers.  

Similarly, IndiGo saw a 15% reduction, going from 39.5 lakh to 33.4 lakh passengers. The total number of passengers traveling in and out of India decreased by 10.5%, falling to 1.7 crore from the previous 1.9 crore in this usually busy summer quarter. 

Growth for Foreign Airlines Amid Challenges 

While Indian carriers faced difficulties, foreign airlines managed to see a 7% growth in their numbers. Emirates increasing its carriage from 13.8 lakh to 14.8 lakh passengers. Meanwhile, Etihad's traffic saw a minimal decline of 1,939 passengers compared to the previous year. 

Read More: Tata Steel Share Price in Focus as CCI Gives Nod to Acquire 23% Additional Stake in TM International Logistics! 

Effects of Pakistan Airspace Closure and Western Carriers 

In addition to challenges posed by the conflict, Indian airlines have also had to contend with the closure of Pakistan's airspace since April 2025.  

Despite these hurdles, Western carriers such as Lufthansa and British Airways have boosted their operations in India. Lufthansa increased its traffic from 3.5 lakh to 3.7 lakh passengers, and British Airways maintained stable figures at around 2.9 lakh passengers. 

Conclusion 

Indian carriers have faced a 26% decline in international passenger traffic due to the US-Iran conflict, with Air India and IndiGo experiencing reductions of 36% and 15%, respectively. Foreign airlines saw an overall increase in passenger numbers, demonstrating the varied impact of geopolitical tensions on global air travel dynamics. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Aug 21, 2026, 1:12 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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