Air India to cut international flights till July over fuel, airspace

Air India, India's flagship carrier, has announced significant reductions in its international flight schedule, which will extend through July 2026. This decision comes amidst a confluence of challenging operational factors, primarily a massive surge in jet fuel prices and persistent airspace restrictions linked to the ongoing West Asia conflict. These combined pressures have rendered numerous international routes unprofitable for the airline, compelling it to scale back operations. Air India's CEO and Managing Director, Campbell Wilson, conveyed this difficult decision in an internal message to employees on Friday, May 1, 2026. He stated that while the airline had already reduced some flying for April and May, the worsening conditions necessitate further trimming of schedules for June and July. Wilson expressed regret for the disruption caused to both customers' travel plans and crew rosters, hoping for a swift resolution to the Middle East situation and the reopening of the Strait of Hormuz to restore normalcy. The core reasons behind these flight cuts are multifaceted. Jet fuel, or Aviation Turbine Fuel (ATF), prices have witnessed an alarming increase. Industry reports indicate that global average jet fuel prices rose to USD 195.19 per barrel for the week ending March 27, 2026, a nearly 100% surge from USD 99.40 at the end of February. This steep rise in fuel costs is a major concern, as fuel typically accounts for a substantial portion, sometimes as much as 40-60%, of an airline's operating expenses. For Air India, which heavily relies on long-haul routes, such a spike has a severe impact on its balance sheet. Adding to the financial strain are the pervasive airspace restrictions in the wake of the West Asia conflict. These geopolitical tensions have forced airlines, including Air India, to reroute a significant number of international services. These detours lead to considerably longer flight paths, which in turn necessitate increased fuel consumption and longer operational cycles, driving up overall costs and eroding profitability. Flights to Europe, North America, Australia, and Singapore are expected to bear the brunt of these reductions, as these long-haul routes are particularly vulnerable to increased fuel burn and extended operational times. The financial implications for Air India are severe. The Air India Group is estimated to have posted losses exceeding ₹22,000 crore for the financial year ending March 31, 2026. This substantial loss underscores the immense pressure the airline is under to rein in costs and achieve financial stability. While the Indian government did roll back a steep domestic jet fuel price hike in early April, no similar relief has been extended for international routes, leaving Air India to grapple with the full impact of global price increases. Air India has attempted to offset these rising costs through fare increases and fuel surcharges. However, CEO Campbell Wilson noted that there is a limit to how much fares can be raised before impacting customer demand and discouraging travel. The airline operates approximately 1,100 flights daily, and a reduction of nearly 100 flights a day across both domestic and international networks is being considered. Other Indian airlines, like IndiGo and SpiceJet, also face similar challenges, and the Federation of Indian Airlines (FIA), representing these carriers, has urged government intervention to alleviate the cost burden, warning of further service suspensions across the industry. While Air India had previously added some extra flights in March 2026 to address demand due to West Asia airspace issues, the current situation indicates a reversal of capacity due to sustained financial pressures. The ongoing crisis in West Asia has significantly disrupted international air travel, forcing airlines to adopt longer, more costly routes to avoid conflict zones. The combination of volatile global fuel markets and geopolitical instability has created one of the most challenging operating environments for airlines globally in recent years, making the current flight reductions a necessary, albeit regrettable, measure for Air India to sustain its operations.

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