It added that increased flight durations have led to higher fuel consumption and operating costs.
West Asia Conflict Hits India Tourism: Arrivals Drop 15–20%, Aviation Loss May Reach Rs 18,000 Crore
A report stated that tourist arrivals in India have declined by 15–20 percent since the start of the West Asia conflict. The report titled “Impact of West Asia Conflict on India’s Tourism, Aviation and Hospitality Sectors” said the aviation sector is expected to face a net impact of around Rs 18,000 crore. It added that the estimate is based on industry trends, booking patterns, cancellations and operational cost pressures examined by rating agency ICRA.
According to the report, airlines have faced flight cancellations, airspace restrictions and rerouting of international flight paths due to disruptions in West Asia. It said flight durations on major international routes have increased by 2–4 hours due to rerouting.
The report stated that fuel accounts for 35–40 percent of airline operating costs. It added that increased flight durations have led to higher fuel consumption and operating costs.
The report said disruptions in West Asia have affected one of the busiest global aviation corridors. It stated that connectivity has been impacted and international airfares have increased on several routes.
The report was released by the PHD Chamber of Commerce and Industry (PHDCCI).
