Air India to Reduce Flights as Fuel Costs Surge

Air India is set to scale down its flight operations, particularly on international routes, due to a sharp increase in aviation turbine fuel (ATF) prices. The airline is planning to reduce several scheduled flights during June and July as mounting costs continue to impact profitability.

According to internal sources, CEO Campbell Wilson acknowledged that multiple international routes have become financially unviable. With fuel prices soaring, the airline has little choice but to cut back on operations to limit losses.

The spike in jet fuel prices is linked to rising global crude oil costs, driven by geopolitical tensions, especially around the Strait of Hormuz—a crucial pathway for oil supply. A recent 5% hike in international jet fuel prices has further worsened the situation for airlines. Apart from fuel costs, factors such as fluctuating currency exchange rates, restricted airspace due to conflicts, and broader economic uncertainties have also influenced the decision. These challenges have collectively increased operational expenses while affecting demand on certain routes.

Although domestic operations have also faced pressure, some relief has come through government measures aimed at stabilizing fuel prices. However, the airline continues to face financial strain.

Air India has urged its employees to remain united during this period of adjustment. The move reflects a wider trend across the aviation sector, where airlines are recalibrating routes and capacity to cope with volatile fuel prices and global instability.

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