Geopolitical tensions in West Asia are affecting global aviation operations, particularly due to airspace restrictions, flight rerouting and higher insurance and security costs for airlines operating international routes. Aviation Turbine Fuel (ATF) continues to be the largest cost component for airlines, accounting for around 35–45 percent of operating expenses and rising fuel consumption due to longer flight routes is increasing airline cost pressures. The hospitality sector remains supported by strong domestic tourism demand, though segments that rely heavily on international visitors such as luxury hotels, heritage properties and MICE tourism may experience demand fluctuations. Restaurants and food service establishments are facing rising operational costs, driven by energy price volatility, LPG supply constraints and supply chain disruptions affecting food procurement and logistics, said the report titled ‘Impact of the West Asia Conflict on India’s Tourism, Aviation & Hospitality Sectors’.Geopolitical tensions in West Asia are affecting global aviation operations, particularly due to airspace restrictions, flight rerouting and higher insurance and security costs for airlines operating international routes. Aviation Turbine Fuel (ATF) continues to be the largest cost component for airlines, accounting for around 35–45 percent of operating expenses and rising fuel consumption due to longer flight routes is increasing airline cost pressures. The hospitality sector remains supported by strong domestic tourism demand, though segments that rely heavily on international visitors such as luxury hotels, heritage properties and MICE tourism may experience demand fluctuations. Restaurants and food service establishments are facing rising operational costs, driven by energy price volatility, LPG supply constraints and supply chain disruptions affecting food procurement and logistics, said the report titled ‘Impact of the West Asia Conflict on India’s Tourism, Aviation & Hospitality Sectors’.
West Asia conflict disrupts aviation, leads to 15–20% dip in inbound tourist traffic; Rs 18,000 crore net loss for industry: PHDCCI report
