New Delhi, March 10 -- The escalating conflict involving Iran, Israel, and the United States has plunged India's aviation sector into crisis, with airspace closures forcing massive flight cancellations and rerouting. While it is too early to peg losses, the combination of the sliding rupee, rising crude and diminishing air routes is putting pressure on the sector like never before.

The war intensified after US and Israeli strikes killed Iran's Supreme Leader Ayatollah Ali Khamenei on 28 February, prompting Iran to launch missiles and drones at Israel and US bases in Gulf nations. Airspaces over Iran, Iraq, UAE, Saudi Arabia, Qatar, Bahrain, and Kuwait shut down, severing India's key West Asia corridor that handles 50% of its internationa...