TravTalk India Online Magazine
Many aviation industry players say there has been a ‘slight increase’ in booking cancellations, but it is only a matter of time before things return to normal. The ticket cancellations were mostly due to concerns over operational reliability and delays, and clients with tight connections or important schedules have been opting for alternative carriers, they say.
Hazel Jain
The aviation industry witnessed widespread cancellations and deferred air travel in June 2025, but travel agents say that might just be temporary, as loyalty for Air India as an airline continues. Ravi Gosain, President, IATO, says, “There have been some cancellations from clients, primarily on Europe-bound routes, such as London and Frankfurt. But these were mostly due to concerns over operational reliability and delays. Clients with tight connections or important schedules have opted for alternative carriers. Despite some concerns, we continue to get bookings for Air India.”
Dismissing widespread cancellations, he adds, “There has been a slight increase in cancellations, but it’s largely linked to visa processing delays or occasional route disruptions, not a general fear of flying. Most travellers are proceeding with their summer travel plans. A small segment of travellers, especially elderly travellers and families are deferring long-haul travel, but it isn’t widespread. Popular destinations in Europe, Southeast Asia and the Middle East continue to see strong demand. While Air India is undergoing a transition under the Tata Group, the market is observing whether these changes improve service consistency. Transparent communication from airlines is now more critical than ever to win traveller confidence.”
Bookings flow in Sunil Kumar, President, TAAI, differs, based on the feedback he has received. “Cancellations are taking place. The options are offered to travellers as they are not preferring Air India. But this is temporary in my opinion, since the fear has taken over decision making. Surely, the accident that happened ought not to have happened, but the airline is doing its best. We are confident of their extra care that would get invested. It will take some time for this setback to get cleared,” says Kumar.
Strong MICE appeal
Ved Khanna, President, ADTOI, also echoes similar sentiments. “Concern around Air India has led to travellers making selective cancellations, especially on long-haul routes, such as Delhi–San Francisco and Mumbai–London. That said, these are isolated cases and not indicative of a mass shift away from the airline.”
Shift in travel insurance trends
Dev Karvat, Founder & CEO, Asego, says he observes a distinct shift in how travellers approach travel protection in the aftermath of the recent Air India incident and amid growing global uncertainties.
“There is a clear move toward opting for higher sum insured options. Previously, many travellers settled for coverage between US$50,000 and 75,000. However, we are now seeing a strong preference for higher-value protection, with many choosing plans starting at US$500,000 and even going up to US$1 million.”
Karvat says that for high medical-cost destinations like the USA, Europe, or parts of Asia, travellers are increasingly selecting premium plans, such as Asego Signature & Plus plans.
