IndiGo says over 500 overseas flights cancelled in last four days due to Middle East tensions, stock falls 4.5%: What lies ahead?

IndiGo says over 500 overseas flights cancelled in last four days due to Middle East tensions, stock falls 5%: What lies ahead?

• IndiGo cancels 500+ international flights amid Middle East tensions.
• IndiGo stock fell 4.6% after flight cancellations.
• Indian airlines run special flights to bring back stranded passengers.

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Low-cost carrier IndiGo on March 4 said it cancelled over 500 overseas flights from February 28-March 3, 2026 due to the ongoing Middle East tensions. On March 4, the airline's stock was trading 4.6% lower at Rs 4,310.4 apiece.

"If these cancellations persist for seven days, we estimate they will erase about Rs 32 crore of IndiGo's profit before tax, equal to about 6% of profit before tax in the fourth quarter," HSBC analysts, led by Parash Jain, said.

"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 February 28, 2026 and March 3, 2026. We continue to closely monitor the revenue environment arising from this situation.

"Our operational teams are continuously assessing the evolving regional developments, recalibrating flight schedules, and planning repatriation operations in coordination with relevant authorities in India and the respective international jurisdictions, with the objective of minimising disruption to passengers," said the airline in a stock exchange filing.

Meanwhile, Domestic air passenger (PAX) traffic increased 7% MoM in January 2026 to 15.3 million (up 4% YoY). Passenger growth increased for IndiGo on a YoY basis, showed data.

IndiGo’s market share declined following the surrender of flight slots due to FDTL implementation. Its domestic market share stood at 63.6% in January 2026 (vs 59.6%/65.2% MoM/YoY).

Meanwhile, Indian airlines, including IndiGo, Air India, Air India Express and SpiceJet, are operating over 12 special flights to various cities in Saudi Arabia and the UAE to bring back passengers stranded due to the escalating Middle East conflict.

Besides, the airlines would operate some special flights to the Middle East on Wednesday.