air india
Loss-making Air India is going to reduce its international flights by July. The reason for this is that due to restrictions on airspace and huge increase in the prices of jet fuel, many routes are no longer profitable. The company’s CEO and Managing Director Campbell Wilson said in a message sent to his staff that we have reduced some flights for April and May… There has been a huge increase in the prices of jet fuel, due to which, due to the closure of airspace and longer routes of flights, many of our international flights have now become a loss-making deal.
increased fuel consumption
Due to restrictions on airspace due to the ongoing conflict in West Asia, airlines are having to adopt longer routes to many international destinations, due to which fuel consumption has increased. Wilson, who has announced he will step down from his post at the end of the year, said the situation related to aerospace and jet fuel prices still remains extremely challenging. He further said that in view of this situation, the airline has no other option but to further reduce the schedule of its flights for June and July. Wilson said we deeply regret the disruption this disruption has caused to our customers’ plans and our crew rosters. We hope that the situation in the Middle East will soon return to normal – and that the Strait of Hormuz will also open – so that we can once again return to normalcy. It is estimated that Air India Group has suffered a loss of more than Rs 22,000 crore in the financial year ending March 31, 2026.
Jet fuel price increase
On the other hand, IOCL has also increased the prices of jet fuel. According to the information, a 5 percent increase in the prices of jet fuel for international flights has been announced on May 1. However, the new prices have not been updated yet. The price of aviation turbine fuel (ATF), or jet fuel for international airlines, was increased by 5 percent on Friday, the second consecutive monthly increase. There is no change in the price of ATF for domestic airlines. According to state-owned oil companies, ATF prices have been increased by USD 76.55 per kilolitre, or 5.33 per cent, to USD 1511.86 per kilolitre in Delhi, which is India’s busiest airport. Earlier on April 1, the rates had doubled.
