Air India has extended the suspension of its Tel Aviv-Delhi services until the end of July as continuing geopolitical tensions in West Asia continue to disrupt international air travel in the region. The airline had earlier suspended flights on the route until the end of June, but officials said the uncertain security situation has forced a further extension. A senior executive overseeing Air India's operation in Israel confirmed that the revised schedule was communicated on Wednesday evening. "The flights have been further suspended till 31 July due to the geopolitical situation," the official said. The conflict in West Asia, which intensified earlier this year, has created significant operational challenges for airlines worldwide, including rising fuel prices, restricted airspace access and increased operating costs.
Airlines have significantly reduced seat capacity across popular Asian destinations due to the Iran war and rising air fares. According to Business Standard reports, seat capacity between India and the UAE fell by 14.9% in June year-on-year, with over 340,426 seats removed from service. The UAE represents the sharpest decline among the 20 busiest country pairs globally. Thailand, the second-largest market for Indian carriers, saw seat capacity drop by 10% with 266,000 seats eliminated, while Singapore, the third-largest market, experienced a 12% reduction with 249,000 seats cut. Malaysia also faced cuts with 15.4% fewer seats and 29,000 seats removed for the month.
Despite Asia cuts, European and UK airlines are significantly expanding their India operations. As reported by Business Standard, direct flights from India to the UK saw seat capacity increase by 18.7% in June, representing the most dramatic increase in direct flights. This expansion is being driven by airlines like British Airways and Lufthansa adding more direct flights and seats to service. The airlines are leveraging a dramatic fall in Indians transiting from India to Europe and the US through West Asia due to the war, while also benefiting from Air India's decision to reduce flights on various European routes.
Air India, which has ordered over 470 planes from Boeing, is rationalising its international services this summer in response to surging fuel prices and continuing airspace restrictions, including over Pakistan, that have forced it to fly longer distances. According to Business Standard data, the total seat capacity across the UAE, Saudi Arabia, Oman and Qatar fell by 11% in June to 1.5 million seats. The airline's strategic decision to reduce flights on European routes has created opportunities for competitors to expand their presence in the market.
The capacity cuts extend beyond West Asia, affecting South-east Asia destinations where air fares have risen 15-30%. Anil Kalsi, vice president of the Travel Agents Federation of India, noted that 30% of Indians traveling to West Asia transit to Europe or the US, and the war has adversely impacted this business segment. European and UK airlines have successfully taken advantage of this market window created by the conflict, with foreign carriers pushing new capacity either by adding services or flying bigger aircraft from India to fill the reduced Asian capacity. The continued suspension of Tel Aviv flights has caused particular concern among more than 40,000 Indians living in Israel, many of whom rely on direct flights for work, family commitments or personal emergencies.
