One of India’s premier airlines, Air India, has decided to trim its international flights from May through July this year due to a surge in jet fuel prices and restricted airspace.
Airspace restrictions in the wake of the West Asia conflict have forced the airline to take longer routes for many international destinations, resulting in increased fuel burn.
Air India Group is estimated to have incurred over ₹22,000 crore losses in the financial year ended March 31, 2026.
The airline will scale back services to Europe, North America, Australia, and Singapore in June, according to The Economic Times.
CEO’s message to staff, explaining reasons of trimming down international operations
Air India’s outgoing CEO and Managing Director Campbell Wilson, in a message to employees, said that many of the airline’s international flights have become unprofitable, and continuing operations will further increase losses.
Also Read | Air India pilot dies of heart attack in Bali hotel during layover
“We have reduced some flying for April and May… A massive rise in jet fuel prices, together with airspace closures and longer flying routes, has caused many of our international flights to become unprofitable to operate,” Wilson told staff, according to news agency PTI.
He further noted that the situation remains “extremely challenging,” forcing the airline to take additional steps. “The airspace and jet fuel price situation remains extremely challenging, leaving us no choice but to further trim schedules for June and July,” he said.
Wilson added that while domestic operations have also been impacted, the effect has been relatively lower. “The profitability of domestic flights has also been significantly affected, but to a lesser degree, thanks to the government’s limitation of the domestic fuel price rise to 25%,” he said.
Also Read | Pilots’ body writes to DGCA over continued FDTL relaxations, cites safety risks
Increasing airfares and fuel surcharge not helping
The CEO said that to offset rising costs, the airline had taken pricing measures, but even these have not helped. “We have increased airfares and imposed fuel surcharges, but these higher fares impact customer demand. We can only raise fares so much before people decide to stay home,” he added.
Industry body had flagged concerns to government in April
The news of Air India trimming its international operations comes four days after the Federation of Indian Airlines wrote to the Ministry of Civil Aviation, highlighting how current aviation fuel prices are stressing the industry.
The body stated that operating flights at current fuel prices is “completely unviable,” noting that ATF pricing for international operations had increased by ₹73 per litre.
“The airline industry in India is under extreme stress and is on the verge of shutting down or stopping operations. The dire condition of the aviation sector has been exacerbated by the West Asia war and the exorbitant increase in aviation turbine fuel prices,” the letter said.
The FIA further noted that aviation turbine fuel typically accounts for 30–40% of an airline’s costs. However, due to the price surge linked to the US-Iran conflict, ATF costs have now risen to 55–60% of total operating expenses.
(With PTI inputs)
About the Author
