IndiGo Cancels Over 500 Flights Amid West Asia Airspace Curbs; Shares Down 2.5%

India's largest airline is already feeling the financial strain of the escalating West Asia conflict. IndiGo confirmed yesterday that it had cancelled more than 500 international flights since 28th February, as airspace restrictions over Iran and the wider region forced it to pull services to the region and several other overseas destinations.

The airline set out the situation plainly in a stock exchange filing. "In view of the evolving airspace restrictions over Iran and the Middle East, more than 500 flights to the Middle East and select international destinations have been cancelled between 28th February 2026 and 3rd March 2026," it said, adding that operational teams were continuously reassessing the situation, adjusting schedules and coordinating repatriation flights with Indian and overseas authorities to limit disruption to passengers.

IndiGo's share dropped by nearly 2.5% on NSE between March 2 and 5.

Away from the international disruption, IndiGo's domestic picture remains broadly healthy. Total domestic air passenger numbers rose 7% month on month in January 2026 to 15.3 million — a 4% increase year on year — with IndiGo recording year-on-year passenger growth over the same period.

The airline's domestic market share, however, slipped to 63.6% in January, down from 65.2% a year earlier, following the surrender of flight slots arising from the implementation of flight duty time limitation rules. Its share was 59.6% the previous month, suggesting some recovery is already underway even as the carrier navigates the turbulence abroad.