New Delhi, April 2 -- The ongoing West Asia crisis is beginning to impact aviation economics, with airlines now facing rising war-risk insurance costs. The conflict is not only disrupting global energy markets but also increasing the cost of operating flights in sensitive airspaces, as insurers move to price in elevated geopolitical risks.

On the question of whether war-risk insurance has gone up post the West-Asia crisis, an airline industry source told ANI that "Previously, Indian carriers did not have dedicated war risk insurance coverage. However, due to the ongoing Iran-Israel conflict, insurers have introduced war risk premiums for flights operating in the affected region".

The source went on to mention that "Currently, the additi...