New Delhi (PTI): Air India and IndiGo on Thursday cancelled some of their overseas flights as the Iranian airspace closure impacted services.

Flights of Air India to the US and Europe, and services of IndiGo to CIS countries, Europe, and Turkey have been impacted, according to officials.

The two airlines, as well as SpiceJet, issued advisories saying that the airspace closure will impact some flights.

Tata Group-owned Air India cancelled at least three flights to the US, and certain services to Europe will face some delays due to the Iranian airspace closure, an official said.

At least three flights -- two from the national capital to New York and Newark, and one from Mumbai to New York -- have been cancelled, the official told PTI.

Flights of IndiGo to CIS countries, Europe, and Turkey have also been impacted.

Another official told PTI that flights to Tashkent (Uzbekistan), Almaty (Kazakhstan), Baku (Azerbaijan), and Tbilisi (Georgia) have been impacted, and some of the services have been cancelled.

These countries are part of the Commonwealth of Independent States (CIS).

Services to European cities and Istanbul (Turkey) have also been impacted due to the closure of the Iranian airspace.

The operational costs are expected to rise for the airlines as they will be forced to take longer routes, resulting in increased fuel consumption.

The Pakistan airspace closure is already pushing the expenses higher for Air India since the airline is taking longer routes for many of the West-bound flights.

In October last year, Air India CEO and MD Campbell Wilson said the estimated loss due to the Pakistan airspace closure is Rs 4,000 crore.

Meanwhile, Air India uses Iranian airspace for flights to the US and Europe, and the alternative option is to fly over Iraqi airspace.

Since using Iraq's airspace will mean a longer duration, the aircraft will not have enough fuel to operate some of the services to the US, the source said.

In a post on X, Air India said that due to the emerging situation in Iran, the subsequent closure of its airspace, and in view of the safety of our passengers, flights overflying the region are now using an alternative routing, which may lead to delays.

"Some Air India flights where currently rerouting is not possible are being cancelled," the airline said, and regretted the inconvenience caused to passengers due to this unforeseen disruption.

Separately, IndiGo, in a post on X, said that due to the sudden airspace closure by Iran, some of its international flights are impacted. "Our teams are working diligently to assess the situation and support affected customers by offering the best possible alternatives," it added.

SpiceJet also informed through a post on X that due to airspace closure in Iran, some of its flights may be affected.

There have been no SpiceJet flight cancellations due to the airspace issue so far, an official said.

Meanwhile, Air India on Thursday said its flight AI101, operating from Delhi to New York (JFK), was forced to return to Delhi shortly after takeoff due to the unexpected closure of Iranian airspace, which impacted its planned route.

"Upon landing in Delhi, the aircraft encountered a foreign object while taxiing in dense fog, resulting in damage to the right engine," it said in a statement.

Tensions are escalating between Iran and the US, and there are fears that the situation could lead to a military conflict.

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New Delhi (PTI): India and the US are "very near" to finalising the trade agreement, and it would be announced when both sides are ready, Commerce Secretary Rajesh Agrawal said on Thursday.

The negotiating teams of both sides are discussing virtually all pending issues, he said.

"Its very near, but we can not put a deadline because that will happen...when both sides are ready and they feel that this is the right time to announce," he told reporters here.

The talks between India and the US had never broken down, and both sides remained engaged, he added.

In the last week of December, Commerce and Industry Minister Piyush Goyal held a virtual meeting with US Trade Representative Jamieson Greer.

The December meeting between Goyal and Greer happened after the visit of a delegation led by Deputy USTR Rick Switzer on December 10 and 11.

In his arrival speech on January 12, the US Ambassador to India Sergio Gor asserted that both sides are actively engaged to firm up a trade deal.

The imposition of steep 50 per cent tariffs by the Trump administration has strained the bilateral relations.

Apart from the additional import duty issue, relations witnessed a severe strain on many other issues, including Trump's claim of ending the India-Pakistan conflict in May last year and Washington's new immigration policy.

"The United States and India are bound not just by shared interests, but by a relationship anchored at the highest levels. Real friends can disagree, but always resolve their differences in the end," Gor has said.

The Ambassador has noted that India and the US are actively engaged on the proposed bilateral trade deal days after Commerce Secretary Howard Lutnick suggested Washington was not very keen to seal the deal soon.

Agrawal also said the bilateral trade between the countries is registering positive growth.

When asked if it is possible that there may not be a trade deal, the commerce secretary said: "We get into all (trade pact) negotiations with a very positive and optimistic mindset....we are engaged with the US. Both sides are engaged. So, I think both sides feel that this can be done".