Air India will scale back its international flight operations through July as soaring jet fuel prices and airspace restrictions linked to the West Asia conflict push several routes into loss-making territory.
Chief executive and managing director Campbell Wilson said the airline has already reduced services in April and May, with further cuts planned in the coming months. The move comes amid estimates that the Air India group posted losses exceeding ₹22,000 crore in the financial year ended March 31, 2026.
Airspace closures over parts of West Asia have forced airlines to take longer routes, sharply increasing fuel burn and operating costs. This comes at a time when global jet fuel prices are already elevated, making several long-haul routes financially unviable.
“We have reduced some flying for April and May… massive rise in jet fuel prices which, together with airspace closures and longer flying routes, have caused many of our international flights to become unprofitable,” Wilson said in a message to staff.
Air India does not expect near-term relief. The combined impact of higher fuel costs and restricted airspace remains “extremely challenging”, leaving the airline with limited options but to trim schedules further in June and July.
The ongoing tensions in West Asia, including disruptions around the Strait of Hormuz, have significantly affected flight paths, adding hours to journey times on key international routes.
Wilson acknowledged the disruption to passengers and crew due to the schedule changes. “We regret the impact on customers’ travel plans and crew rosters, and hope the Middle East situation stabilises soon so that operations can return to normal,” he said.
The Tata Group-owned carrier has been in the middle of a multi-year turnaround, rebuilding its fleet, network and service standards after privatisation. However, the latest external shocks — rising fuel costs and geopolitical disruptions — have added fresh pressure, delaying a full recovery in international operations.
