As the Iran war escalates, European airlines are seeing jet fuel prices surge and Middle East routes face disruption, putting summer holiday plans at risk. Hedging has cushioned early impacts, but analysts warn shortages could materialize if the conflict drags on. Even with strong overall demand, some carriers report weaker forward bookings and have issued profit warnings.
India’s heatwave is pushing travelers to cooler escapes like Dehradun and Munnar, with travel firms reporting a sharp rise in hill-station bookings. Summer holidays appear to be arriving earlier this year, a shift expected to support healthier domestic tourism growth. Popular destinations are also seeing hotel rates climb as demand intensifies.
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Thai AirAsia says it will reduce seat capacity by about 30% in May and June after jet fuel prices surged and mid-year travel demand weakened. The airline plans to optimize domestic flight frequencies and has temporarily suspended or cut services on Indian routes, citing high operating costs, while other markets remain comparatively stable.
Unrest in West Asia is rippling through India’s aviation and tourism business. Airlines face higher costs and longer flight times, while international travel weakens as routes become less efficient. Inbound tourism is also sliding, with Indian visitors shifting to shorter trips abroad. The combined pressure could amount to a major multi-thousand-crore loss.
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