Tata-owned Air India has implemented significant cuts across its international network for three months, starting June, as soaring jet fuel prices squeeze its operations.
The cuts include total suspension of flights to key destinations like Chicago, Newark, Singapore and Shanghai from its main hub at Delhi.
Frequencies to destinations like San Francisco, Paris, and Toronto have also been reduced. Overall, the airline has reduced around 100 daily flights.
Global average jet fuel prices hit $162.89 per barrel for the week ending 8 May 2026 from $99.40 recorded at end-February. With fuel accounting for up to 40% of an airline's operating costs, even modest price movements can severely dent profitability and push ticket prices higher.
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Last week Air India CEO Campbell Wilson had told employees that the airline would continue reducing international services as airspace restrictions and higher fuel prices had made several routes unprofitable.
He said the airline had little choice but to trim schedules further during the peak travel season. People aware of the development further reduction of flights is possible if fuel price remains high.
Air India is bearing a heavier blow than rival IndiGo. The closure of Pakistani airspace has forced its Europe and North America-bound flights onto longer routes, sharply increasing fuel consumption and crew costs. Flights to North American cities must now make stops at Vienna or Stockholm, compounding the expense.
The airline has already accumulated losses exceeding Rs 20,000 crore, and owner Tata Sons — along with strategic partner Singapore Airlines — faces mounting pressure to rein in costs and restore the carrier to financial health.
"We are not recovering even the operating cost on most flights. A sustained increase will force us to cut more," a senior airline official said.
Last month, the Federation of Indian Airlines — representing IndiGo, Air India and SpiceJet — warned of possible service suspensions unless the government steps in to ease the cost burden.
While India rolled back a steep domestic fuel price hike in early April, it has offered no relief on international routes. Jet fuel at Delhi now costs double its March price, and airlines warn that any further increase will make flights financially unviable.
On Sunday, Prime Minister Narendra Modi asked India’s 1.4 billion people to spend less on fuel, fertilizer, and travel, a call for sacrifice that landed like a thunderclap and underlined the severity of the economic crisis caused by the war in Iran.
The cuts include total suspension of flights to key destinations like Chicago, Newark, Singapore and Shanghai from its main hub at Delhi.
Frequencies to destinations like San Francisco, Paris, and Toronto have also been reduced. Overall, the airline has reduced around 100 daily flights.
Global average jet fuel prices hit $162.89 per barrel for the week ending 8 May 2026 from $99.40 recorded at end-February. With fuel accounting for up to 40% of an airline's operating costs, even modest price movements can severely dent profitability and push ticket prices higher.
(Join our ETNRI WhatsApp channel for all the latest updates)
Last week Air India CEO Campbell Wilson had told employees that the airline would continue reducing international services as airspace restrictions and higher fuel prices had made several routes unprofitable.
He said the airline had little choice but to trim schedules further during the peak travel season. People aware of the development further reduction of flights is possible if fuel price remains high.
Air India is bearing a heavier blow than rival IndiGo. The closure of Pakistani airspace has forced its Europe and North America-bound flights onto longer routes, sharply increasing fuel consumption and crew costs. Flights to North American cities must now make stops at Vienna or Stockholm, compounding the expense.
The airline has already accumulated losses exceeding Rs 20,000 crore, and owner Tata Sons — along with strategic partner Singapore Airlines — faces mounting pressure to rein in costs and restore the carrier to financial health.
"We are not recovering even the operating cost on most flights. A sustained increase will force us to cut more," a senior airline official said.
Last month, the Federation of Indian Airlines — representing IndiGo, Air India and SpiceJet — warned of possible service suspensions unless the government steps in to ease the cost burden.
While India rolled back a steep domestic fuel price hike in early April, it has offered no relief on international routes. Jet fuel at Delhi now costs double its March price, and airlines warn that any further increase will make flights financially unviable.
On Sunday, Prime Minister Narendra Modi asked India’s 1.4 billion people to spend less on fuel, fertilizer, and travel, a call for sacrifice that landed like a thunderclap and underlined the severity of the economic crisis caused by the war in Iran.
