Air India Extends Tel Aviv Flight Suspension Through September

The suspension affects more than 40,000 Indians living in Israel who need to travel for work, family visits or to leave the region, the report said. Air India was the only Indian carrier flying the route.

The security backdrop has deteriorated over the past 10 days. The U.S. military struck bridges, water desalination plants and electrical facilities in Iran, while Iranian forces hit U.S. bases in allied countries across West Asia, the report said. The conflict began in late February.

For airline stocks, the extended suspension signals that a key route will remain closed for at least another four months, reducing capacity and revenue for carriers that serve Tel Aviv. The broader readthrough is that geopolitical risk in the Middle East is not easing, which could keep jet fuel costs elevated and push insurers to raise war-risk premiums for flights through the region. Oil prices have drawn support from the same tensions, though the direct impact on crude markets has been muted so far.

Air India last operated the Tel Aviv-Delhi route in February.