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Iran Conflict Exposes Indian Airlines' Dependence on Gulf Hubs
International passenger traffic to and from India fell 9% year-on-year to 17.2 million in the April-June quarter as the Iran war disrupted Middle East routes, with Indian carriers' international traffic plunging 27%.
Indian carriers bore the brunt of the disruption, with their combined international traffic falling about 27% to 6.4 million passengers in the April-June quarter, according to new data from the Directorate General of Civil Aviation (DGCA).
The overall market shrank 9% year-on-year to 17.2 million passengers during the same period.
The disruptions were triggered by the Iran war, which began earlier in 2026 and led to airspace restrictions across the Middle East. The conflict hit at the heart of Indian aviation's reliance on Gulf hubs such as Dubai, Doha, Abu Dhabi and Muscat.
These cities function not just as destinations but as critical gateways for India's large expatriate population and major connecting points to Europe, Africa and North America. The impact varied sharply from market to market.
The data underscores how India's global aviation ambitions still run through the Gulf, and how quickly geopolitical shocks in the region can reach Indian carriers.