Air India to Trim International Services Till July, Cites Operational Reasons

For the months of June and July, Air India will cut back on its international flight operations due to the dramatic increase in the price of aviation turbine fuel (ATF). Moreover, media reports indicate that multiple routes are no longer profitable due to the continued airspace restrictions.

Managing Director and Chief Executive Officer Campbell Wilson informed employees that, due to increasing operational issues, Air India must reduce schedules in June and July. As a result of the steep increase in the price of jet fuel, together with airspace closures and lengthier flying routes, the airline has already cut back on several flights in April and May.

Indian Aviation Sector Seeks Stronger Govt. Support

The airline industry in India had previously requested immediate government assistance. The Federation of Indian Airlines (FIA), which includes airlines including SpiceJet, Air India, and IndiGo, recently wrote to the Civil Aviation Ministry to express their concern about the "extreme stress" that the industry is experiencing as a result of the skyrocketing prices of aviation turbine fuel (ATF). Air India's foreign operations have been greatly impacted by the recent spike in ATF prices.

This is coupled with unfavourable currency exchange rates, limited airspace, and the wider effects of the war in the Middle East. The airline has reduced service due to the unviability of many foreign routes. The industry reports that aviation fuel, which used to make up roughly 30–40% of airline costs, now makes up as much as 55–60% of operating expenses. Because of airspace constraints imposed as a result of the war in West Asia, Air India has had to lengthen its itineraries to a number of foreign locations. Consequently, fuel usage and expenditures are both raised. Wilson said the airline is left with few choices due to the "extremely challenging" scenario.

Air India taken Massive Hit Due to US-Iran War

Profitability in domestic flights has also fallen, but the government has stepped in to mitigate some of the damage. Wilson asked for the staff's "continued solidarity" as the airline dealt with the problem in his message to them. He expressed regret for the inconvenience to passengers and crew and hoped that the situation in the Middle East would soon calm down so that important routes, such as the Strait of Hormuz, could be reopened.

For the fiscal year ending March 31, 2026, Air India Group is projected to have lost more than INR 22,000 crore. Following the easing of fuel prices and the lifting of airspace restrictions, the airline will strive to resume normal operations, according to Wilson, who has declared his intention to step down later this year.