IndiGo and Akasa Air Extend Flight Cancellations to Saudi Arabia

what happened

IndiGo and Akasa Air have extended cancellations of flights to Saudi Arabia, according to Moody's. The carriers cite continuing security concerns in the Middle East, following attacks on Saudi targets, including one at Riyadh airport that killed an Indian national, and are reassessing their schedules.

IndiGo has suspended flights to Riyadh until October 31 inclusive, while services to Jeddah, Dammam and Madinah remain cancelled until October 27 inclusive. Akasa Air extended the suspension of its Riyadh and Jeddah flights until October 27. Affected passengers can get a full refund within seven days or rebook without an extra charge. Air India and Air India Express have also suspended operations to Saudi Arabia.

why it matters

For markets, the main effect is on Indian aviation: a prolonged cancellation period cuts carriers' revenue on a key route used by Indian travellers and workers. Shares of IndiGo, whose parent is InterGlobe Aviation, and other airlines may react to the extended downtime, refund costs and the wider security situation in the region.

market impact

Indian airlines: extended cancellations cut revenue on the Saudi Arabia routes, pressuring carrier shares

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