Indian airlines fear revenue loss as local hotels turn to domestic markets
Dubai Airports has capped foreign airline access to a single daily flight per carrier until 31 May 2026, as fallout from the Iran war continues to disrupt regional aviation. The move has raised concerns among Indian airline operators already grappling with rising fuel costs and operational constraints, according to Reuters.
The restriction applies to both Dubai International Airport (DXB), typically the world’s busiest international hub, and Al Maktoum International Airport (DWC), and covers the period from 20 April to 31 May.
Most international carriers had already suspended flights to Dubai during this period, but the Federation of Indian Airlines (FIA), which represents major carriers including IndiGo, Air India and SpiceJet, has raised concerns with the Indian government.
In a letter dated 31 March, shared with Reuters, the body warned that the restrictions could exacerbate financial strain on airlines already under pressure from elevated fuel prices and disrupted flight paths caused by an existing airspace closure over Pakistan, following military tensions between the neighbours in 2025.
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The FIA has urged officials to request a relaxation of the curbs and suggested India consider reciprocal measures against UAE carriers if allowances are not made.
Dubai’s hospitality sector will also be impacted. India was the largest source market of passengers for Dubai International in 2025, with 11.9 million travellers passing through the hub.
Alongside ongoing inbound flight restrictions, key source market government advisories warning against travel to Dubai and limited travel insurance availability will prolong low occupancy levels across the emirate’s hotels.
As demand slips back towards pandemic-era levels, properties are once again pivoting to domestic markets, rolling out attractive ‘staycation’ offers to fill rooms as well as restaurants.
Reverting to the Covid playbook, many in the sector are hopeful that once regional tensions ease, a similar surge of pent-up travel demand will return to help drive a swift recovery.
International carriers suspending schedules to Dubai:
Aegean Airlines: Dubai flights suspended until 31 May
AirBaltic: Dubai flights suspended until 24 October
Air Canada: Dubai flights suspended until 7 September
Air France-KLM: Air France Dubai flights suspended until 19 April; KLM Dubai flights suspended until 17 May
Austrian Airlines: Dubai flights suspended until 31 May; Abu Dhabi flights suspended until 24 October
British Airways: Dubai flights suspended until 31 May; Abu Dhabi flights suspended until further notice
Brussels Airlines: Dubai flights suspended until 31 May; Abu Dhabi flights suspended until 24 October
Cathay Pacific: Dubai passenger flights suspended until 31 May
Edelweiss: Dubai flights suspended until 31 May; Abu Dhabi flights suspended until 24 October
Eurowings: Dubai and Abu Dhabi flights suspended until 24 October
Finnair: Dubai flights suspended until October
Flynas: Dubai, Abu Dhabi and Sharjah flights suspended until 15 April
ITA Airways: Dubai flights suspended until 31 May; Abu Dhabi flights suspended until 24 October
LOT Polish Airlines: Dubai flights suspended until October
Lufthansa Group: Dubai flights suspended until 31 May; Abu Dhabi flights suspended until 24 October
Norwegian Air: Dubai flights suspended until 8 April
Pegasus Airlines: Dubai, Abu Dhabi and Sharjah flights cancelled until 1 May
Singapore Airlines: Dubai flights suspended until 31 May
SunExpress: Dubai flights suspended until 30 April
Swiss Air: Dubai flights suspended until 31 May; Abu Dhabi flights suspended until 24 October
Wizz Air: Dubai and Abu Dhabi flights from mainland Europe suspended until mid-September