InterGlobe Aviation Ltd. said the conflict in the Middle East disrupted routes that account for nearly one-fifth of the capacity operated by IndiGo, highlighting the scale of the airline’s exposure to airspace restrictions and flight disruptions in the region.
The airline said services affected by the conflict, including flights to the Middle East and Europe, account for around 18% of its network capacity and roughly 160 daily flights. The disruption weighed on aircraft utilisation and revenue during the quarter.
The disclosure offers investors the clearest indication yet of how geopolitical tensions are affecting India’s largest airline. While IndiGo had previously flagged operational disruptions linked to the conflict, management quantified the impact during the earnings call, outlining the extent of capacity exposed to affected corridors.
“We continue to monitor the situation closely,” management said during the earnings call, adding that routes linked to the Middle East and Europe together represent about 18% of the airline’s total capacity.
Growth Interrupted
The airline said demand had largely recovered from the operational disruptions it faced earlier in the financial year. However, the conflict in the Middle East emerged as a fresh challenge during the quarter.
Management said the airline was seeing capacity growth of around 10% during January and February. That momentum slowed as airspace restrictions and route disruptions affected operations across parts of its international network.
The company said the conflict reduced aircraft utilisation and affected revenue generation towards the end of the quarter.
The impact was felt not only on flights to Gulf destinations but also on services to Europe that rely on affected flight paths, according to management.
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International Exposure
The disclosure comes as IndiGo expands its international operations and prepares to add more long-haul destinations to its network.
International services have become an increasingly important contributor to the airline’s growth strategy. The company has outlined plans to expand overseas operations using new aircraft deliveries, including the Airbus A321XLR fleet.
The Middle East remains one of IndiGo’s largest international markets, while Europe is expected to play a larger role in future expansion plans.
Management said the airline remains focused on executing its growth strategy despite the disruption and continues to monitor developments in the region.
The company reported its quarterly results on Thursday and discussed the impact of the conflict during a post-results earnings call with analysts.
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