air india
Tata-owned Air India has made a major cut in its international network for three months starting from June. The reason for this is that due to the rising prices of jet fuel, its operation is being put under pressure. These cuts include completely stopping flights from its main hub in Delhi to important destinations like Chicago, Newark, Singapore and Shanghai. The number of flights to destinations like San Francisco, Paris and Toronto has also been reduced. Overall, the airline has reduced daily flights by about 100.
Global average jet fuel prices increased to $162.89 per barrel in the week ending May 8, 2026, compared to $99.40 at the end of February. Since fuel accounts for up to 40% of an airline’s operational expenses, even slight changes in prices can have a negative impact on profits and increase ticket prices.
Last week, Air India CEO Campbell Wilson told employees that the airline would continue to cut international services as many routes are no longer profitable due to airspace restrictions and high fuel prices. He said that the airline has no choice but to further reduce the flight schedule even in the busiest travel season. People with knowledge of the matter say that if fuel prices remain high, flights may be cut further.
More harm than indigo
Air India is suffering more losses than its competitor Indigo. Due to closure of Pakistan’s airspace, its flights going to Europe and North America have to take long routes, due to which fuel consumption and crew expenses have increased significantly. Flights to North American cities now have to stop in Vienna or Stockholm, increasing costs even further.
The airline has already suffered losses of more than Rs 20,000 crore and its owner Tata Sons, along with its strategic partner Singapore Airlines, is facing increasing pressure to rein in expenses and make the airline financially strong again. A senior official of the airline said that we are not even able to meet our operational expenses on most of the flights. If prices continue to rise, we will have to make further cuts.
Although India had rolled back the huge increase in domestic fuel prices in early April, it has not given any relief on international routes. Jet fuel prices in Delhi are now double their March prices, and airlines have warned that if prices rise further, it will become impossible to operate flights economically.
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