Travel firms hit as West Asia crisis triggers cancellations, stock decline

Travel and tourism stocks fell more sharply than the Sensex as tensions in West Asia led to mass cancellations, flight disruptions and rising uncertainty across key outbound markets for India

Companies connected to the travel and tourism sector were among the first to take the hit following the escalating tensions in West Asia, with stocks of most listed firms as well as the Nifty Tourism Index falling sharper, at 3.34 per cent, than the BSE Sensex, which fell 1.29 per cent.

 

Travel companies said they were constantly monitoring the situation in the region, which is a major segment of India’s travel market, with the UAE and Saudi Arabia being the top two markets having 36.6 per cent share of the total 32.7 million outbound travellers in 2025. About 8.6 million people travelled to the UAE and 3.4 million to Saudi Arabia last year, according to the Ministry of Tourism data.

 

“Unfortunately, travel is the first casualty, and mass cancellations have happened. Safety during this conflict is the need of the hour. We hope the conflict is settled soon, so that normalcy returns to the world and aviation,” said Anil Kalsi, board member, Federation of Associations in Indian Tourism and Hospitality (FAITH).

 

Stocks of Yatra Online, EaseMyTrip, Thomas Cook India, and Ixigo, among others, fell on the BSE on Monday after the markets opened. Market leader MakeMyTrip is listed on Nasdaq, which was yet to open as of Monday 7 pm India time.

 

Travel aggregators have beefed up their customer support systems and staff as they work with airlines to provide regular and frequent updates to flyers, including those stuck in areas affected by the attacks.

 

“This is an evolving situation. We are working closely with our airline partners to ensure travellers receive timely updates in line with the latest advisories and official communications issued by airlines,” said a MakeMyTrip spokesperson.

 

With a customer support centre operating round the clock, the company has augmented its capacity by 2.5 times to assist travellers. “In addition to enhanced human support, we are leveraging artificial intelligence (AI) to ensure swift dissemination of information,” the spokesperson said.

 

A significant number of travellers booked for near-future travel to or via the West Asian region are opting to defer their travel plans. “We are supporting date changes in accordance with the policies communicated by the respective airlines,” the company added.

 

“The evolving geopolitical situation in West Asia has triggered temporary flight cancellations and schedule changes by airlines flying through the region, hitting several international routes hard. At Cleartrip, our immediate focus is on supporting our customers. We have activated priority assistance lines and support to help with cancellations, refunds, and itinerary changes. We are partnering closely with airlines to deliver timely updates and every viable alternative. We will keep monitoring closely and pivot with official advisories,” a Cleartrip spokesperson said.

 

Visa and passport outsourcing firm BLS International alerted applicants to “temporary adjustments in appointment schedules, processing timelines, or Visa Application Centre operations” due to the unfolding crisis.

 

While advising applicants to regularly monitor official travel advisories issued by their local authorities, it further pointed out that travel to affected areas should be avoided unless necessary.

 

“Owing to the evolving geopolitical situation and operational disruptions in parts of West Asia, we are witnessing a noticeable rise in booking cancellations and rescheduling requests, particularly for sectors connecting India with Europe via major Gulf hubs,” said Ravi Gosain, president, Indian Association of Tour Operators (IATO).

 

With a significant portion of India-Europe traffic transiting through West Asia, airspace restrictions or flight suspensions have a cascading impact. “Travel agents across the country are working closely with airlines and overseas partners to minimise inconvenience to passengers by facilitating re-bookings, refunds, and alternative routings,” he added. 

"In light of the evolving situation in the Middle East, we are seeing a noticeable increase in flight cancellations and rescheduling requests from Indian travellers, particularly for routes to and from the affected regions. Airlines are currently offering full refunds or waiver options, which has helped travellers manage their plans with greater flexibility. At this stage, however, we have not observed any systemic impact on domestic airfares and pricing trends within India remain stable," said Bharatt Malik, Senior VP – Air and Hotel Business, Yatra Online.