The closure of Pakistan’s airspace to Indian airlines has affected operations of Indian carriers. Budget airline IndiGo has canceled its flights to Almaty in Kazakhstan and Tashkent in Uzbekistan till May 7 due to these restrictions and “limited rerouting options.” It added that these are outside the operational range of the carrier’s current fleet.
IndiGo also said that around 50 international routes operated by the airline will need to fly longer routes due to the development.
Full-service airline Air India also said it is expecting flights to or from North America, UK, Europe, and Middle East to take longer extended routes. SpiceJet also shared a similar advisory.
Low-cost airline Akasa Air, however, said that the closure of the airspace will not have any significant impact on its operations, likely due to its smaller network.
Civil Aviation Watchdog’s Advisory: The Directorate General of Civil Aviation (DGCA) has advised Indian airlines to provide proper communication and in-flight catering services to passengers in view of the longer flying time of international flights.
The advisory focuses on five areas: pre-flight passenger communications, in-flight catering, medical preparedness and alternate aerodromes, customer service and support readiness, and intra- departmental coordination. It said that airlines have to ensure all passengers are “proactively” informed about the changes in routing and the revised total travel time, along with any possibility of a technical refueling stop and the procedures during such a stoppage.
They have also been asked to carry adequate medical kits and meals and beverages according to the revised flying times and taking into account technical stops.
Terrorist Attack and Airspace Closure: Following a terrorist attack in Kashmir that killed 26 tourists last week, tensions escalated between India and Pakistan. Pakistan announced the closure of its airspace for Indian carriers on Thursday evening.
The closure is likely to significantly impact flights heading to Central Asian countries, such as Azerbaijan, Kazakhstan, and Georgia, which are rapidly emerging as preferred destinations for Indian travelers. This can cause Indian airlines to miss out on revenues from these sectors, especially as non-Indian airlines will be able to fly over Pakistan airspace.
An aviation analyst told Skift earlier that these low-cost routes cannot observe a two-hour detour. “Some of these routes might not survive. And it’s not just viability, airlines can’t hike up fares too much or they stand to lose passengers.”
Travel Advisories Warn Citizens to Avoid India-Pakistan Border
The U.S., UK, and Canada have issued travel advisories after the Pahalgam terrorist attack last week. They have urged their citizens to avoid travel to the Union Territory of Jammu & Kashmir as well as areas near the border with Pakistan.
In their advisories, the countries also noted the closure of the Attari-Wagah border, which connects the two countries. The warnings can significantly impact inbound tourism to Jammu & Kashmir, and in India in general as they have also asked travelers to exercise a high degree of caution when visiting.
The UK’s Foreign, Commonwealth and Development Office (FCDO) also issued warnings about potential safety issues in Gujarat and Rajasthan due to the state’s shared border with Pakistan.
While Australia had already been advising its citizens to exercise a high degree of caution when traveling to India, the country revised its advisory on April 25 noting the closure of the India-Pakistan border. “If you have plans to travel to India from Pakistan using any land borders, consider making alternate arrangements and follow the advice of local authorities.” It further warned its citizens of “threat of terrorism and crime and the risk of civil unrest” in India overall.
Prestige Hospitality Plans $318 Million IPO
Property development company Prestige’s hotel arm Prestige Hospitality Ventures is planning to raise up to INR 27 billion ($318 million) in its upcoming IPO. In its Draft Red Herring Prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI) this weekend, Prestige said it is also considering a pre-IPO placement of up to INR 3.4 billion ($40 million).
The filing from Prestige is the latest in a series of IPO filings in the industry, including those by Brigade Hotel Venture and The Leela Palaces’ parent company Schloss Bangalore.
Prestige said in its DRHP that it is planning to use around INR 11 billion ($129 million) for repaying or prepaying its existing loans, trimming interest costs, and improving the balance sheet. The remaining proceeds will be used to support growth through targeted acquisitions of stressed or strategically located hotel assets, it added.
Prestige’s focus is on owning and developing high-end hotels and resorts in India rather than operating the hotels directly. At present, the company has management agreements with operators such as Marriott International, Hilton, and Banyan Tree. At the end of last year, Prestige’s asset portfolio comprised seven operating hotels totaling 1,445 keys, one of which is currently being renovated and rebranded from 178 to 190 keys.
Hilton Debuts in Madhya Pradesh
Hilton has opened a Hilton Garden Inn-branded hotel in Madhya Pradesh’s Jabalpur. With this, the hotel chain has entered the central state of Madhya Pradesh.
In a statement, the company added that the 101-key property is also the first internationally branded hotel in the city of Jabalpur. In February, Hilton signed a DoubleTree by Hilton hotel in Madhya Pradesh’s capital Bhopal.
Hilton is working to expand in India. Last year, Skift reported that the company was planning to double its footprint from then 26 operational hotels in a span of 3 to 4 years. It is also looking to expand into about 75 markets across India, including state capitals, and emerging Tier-2 and 3 markets.
Domestic Passenger Traffic Increased Over 11% in March
In March 2025, the domestic air passenger traffic increased by over 11% year-on-year at an estimated 14.9 million passengers, according to credit ratings agency ICRA. The airlines also increased their capacity deployment during the month by 8.5%.
For the 2025 financial year, the domestic air passenger traffic stood at 165.7 million, an increase of nearly 8% year-on-year. This was also 17% higher than pre-Covid levels, ICRA noted.
The credit ratings firm also noted that between April 1, 2024 and February 28, 2025, the international passenger traffic for Indian carriers was 31 million, an over 40% increase from pre-Covid levels.
It continued to maintain a stable outlook for Indian aviation industry, expecting moderate growth in domestic air passenger traffic and a relatively stable cost environment in the 2025-26 fiscal year.
IHCL Signs SeleQtions Hotel in Goa’s Anjuna
Indian Hotels Company (IHCL) has signed a SeleQtions-branded hotel in Goa’s Anjuna. The property will be converted from a standalone resort and its inventory will be expanded to 51 rooms.
Despite recent controversies surrounding Goa, the company is betting big on the state. “Goa remains one of India’s most sought-after travel destinations. It continues to witness growing demand for experiential stays in distinctive locations like Anjuna,” said Suma Venkatesh, executive vice president for real estate and development at IHCL.
Azerbaijan Airlines to Launch Ahmedabad-Baku Direct Flight
Azerbaijan Airlines has announced its plans to launch a direct flight from Baku to Ahmedabad in Gujarat. The service is scheduled to start in July this year and the airline will operate four weekly flights on the route.
This comes as Indian airlines face challenges in flying to Central Asian destinations due to Pakistan’s airspace restrictions indefinitely. As these restrictions are only being imposed on Indian carriers, airlines in India are likely to lose revenue to other airlines.
