‘Indian airlines incurring additional weekly costs of ₹77 crore due to rerouting’

Rajen Bhatia, MD, Tulsidas Khimji said, “The recent escalation in India-Pakistan tensions has led to significant disruptions in both domestic and international cargo movement. Time-sensitive cargo, including pharmaceuticals, perishables and e-commerce shipments, is experiencing delays or rerouting. Northern states like Punjab, Haryana, Jammu & Kashmir, and parts of Uttar Pradesh, which are logistics hubs, are particularly affected.  With air routes compromised, there’s an increased reliance on road and rail transport. This shift may lead to overburdened highways, delayed deliveries and increased costs. Numerous airlines have rerouted or canceled flights to avoid the affected airspace. This includes long-haul flights that typically traverse the region’s airspace. Indian airlines are incurring additional weekly costs of approximately ₹77 crore due to rerouted international flights from northern cities. The cumulative monthly operational impact could exceed ₹306 crore. There may be an increase in insurance claims due to cargo delays or spoilage. The ongoing situation underscores the far-reaching consequences of geopolitical conflicts on international air travel and cargo movement.