Dubai Flight Curbs Hit Indian Airlines Revenue Hard

Dubai has extended restrictions on foreign airlines, allowing only one daily flight to its airports until May 31, amid the ongoing Iran crisis. The move is expected to significantly impact international carriers, especially Indian airlines, which operate the highest number of flights to Dubai.

According to communications reviewed by Reuters, the Federation of Indian Airlines (FIA) has raised concerns with the Indian government. The body represents major carriers such as IndiGo, Air India, and SpiceJet.

In a letter dated March 31, FIA urged authorities to intervene diplomatically with Dubai and push for the removal of the restrictions. If the curbs continue, the group has suggested considering reciprocal measures against UAE-based airlines like Emirates and flydubai.

The restrictions apply to both Dubai International Airport (DXB)—one of the world’s busiest international hubs—and Al Maktoum International Airport (DWC). Airlines are limited to one round trip per day during the summer schedule from April 20 to May 31.

Dubai Airports stated that additional flight slots may be allocated only if capacity allows. However, Indian airlines argue that the current policy creates an uneven playing field, as UAE carriers continue to operate multiple daily flights.

The impact is particularly severe for Indian carriers. Data shows that Air India and Air India Express had scheduled over 750 flights to Dubai during April and May, while IndiGo planned 481 flights. The one-flight-per-day cap drastically reduces their operational capacity.

IndiGo has already acknowledged that the restrictions have “significantly constrained” its operations, leaving aircraft and capacity underutilized. Similarly, Air India Express noted that the curbs have limited travel options, especially for passengers from smaller Indian cities.

The situation is further complicated by existing challenges faced by Indian airlines, including rising fuel costs and longer flight routes due to restricted access to Pakistani airspace.

Meanwhile, several global airlines, including Lufthansa, Singapore Airlines, and British Airways, have temporarily suspended their Dubai operations until at least May 31. These carriers are instead focusing on alternative routes, particularly between Asia and Europe, where demand remains strong.

With India being Dubai’s largest passenger market—recording nearly 11.9 million travelers in 2025—the ongoing restrictions are expected to have a significant commercial impact, especially on Indian aviation players.

Industry experts warn that unless a balanced solution is reached soon, the curbs could lead to substantial revenue losses and further strain India-UAE aviation relations.