Desk note · industry · Aviation / travellers
Air India said on 16 October 2026 that all flights to and from Riyadh, Dammam, and Jeddah are cancelled until 20 October amid drone and missile attacks on Saudi aviation infrastructure, with full refunds offered to passengers and rival carriers extending their own suspensions.
On 16 October 2026, Air India posted a travel advisory on X stating that flights to and from Riyadh, Dammam, and Jeddah remain cancelled until 20 October 2026 while the airline monitors security developments. Passengers on affected bookings are eligible for full refunds. The move follows repeated attacks on Saudi airports attributed to Yemen’s Houthi forces, including strikes on Riyadh’s King Khalid International Airport and Abha airport in the southwest. Reporting cites coalition statements on casualties and damage to civilian aviation infrastructure. Earlier in the week, IndiGo extended Saudi cancellations to 24 October and Akasa Air pushed Riyadh and Jeddah suspensions to 21 and 24 October respectively. The Indian embassy in Riyadh confirmed that an Indian national injured in an attack on 10 October later died, with other Indians still under care.
Gulf routes are a core part of Indian carriers’ international networks for labour traffic, pilgrimage travel, and business links. When multiple airlines pause the same markets together, rebooking capacity through Dubai, Doha, or Bahrain becomes crowded and fares on indirect routings can jump. Full refunds protect consumers legally, but last-minute alternative tickets may still cost more or require visas for transit countries, as the embassy noted when pointing Indians to neighbouring hubs. For airlines, parked wide-body capacity on Saudi sectors bleeds revenue while insurance and crew-duty rules complicate quick restarts even if a single date is announced.
If you hold tickets to Saudi Arabia before late October, check airline apps for automatic refunds or reissue options and compare one-stop routings if travel is urgent. Corporate travel desks should pause non-essential Saudi trips until carriers publish stable schedules. Investors in Indian aviation should model international yield risk alongside domestic festive demand. Watch whether Air India lifts the 20 October deadline, any further embassy advisories, and whether insurance policies cover disruption from conflict zones.
Trade policy / exports
Commerce minister Piyush Goyal said on 22 October 2026 that India’s proposed free-trade agreement with the European Union could become operational within four to five months after signing, with the deal expected to be inked before year-end during his visit to Germany.
Food delivery / quick commerce
Swiggy reported on 22 October 2026 that September-quarter revenue rose 36% to about ₹7,571 crore and the consolidated net loss narrowed to ₹922 crore, as food delivery posted record adjusted core profit of about ₹349 crore while quick-commerce Instamart lost about ₹764 crore at the segment level amid heavier discounting and 69 new dark stores.
Quick-service restaurants / consumers
KFC and Pizza Hut operator Sapphire Foods India said on 22 October 2026 that September-quarter consolidated restaurant sales rose 20% year on year to about ₹885 crore, with KFC India same-store sales up 14% and adjusted EBITDA margin expanding 100 basis points to 7.1% even as the listed stock remained far below its 52-week high.
RBI / government borrowing
On 22 October 2026, the Reserve Bank of India accepted no bids at the scheduled sale of short-dated government treasury bills, the first full cancellation in about seven months, as investors demanded higher yields amid a bond selloff, oil-linked inflation fears, and expectations of more rate hikes after October’s policy minutes.
For informational purposes only. Not investment advice. Verify with filings and a licensed adviser.