New Delhi, Nov. 5 -- Indian aviation could emerge as a major beneficiary of any de-escalation in the West Asia conflict, with changing geopolitical dynamics following the US midterm elections potentially improving the industry's operating environment, according to a report by Jefferies.

The report said a possible shift in geopolitical conditions after the US midterm elections could revive the so-called 'end-of-war trade', similar to the positive market sentiment seen in June. However, the path towards de-escalation remains uncertain.

Any easing of hostilities could provide relief to Indian airlines and airports through lower aviation fuel costs, reduced flight rerouting expenses and a recovery in passenger traffic.

These factors could ...