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Air India cuts international flights amid surge in jet fuel prices
New Delhi: Air India has announced it will scale back its international flight schedule through July, citing a sharp rise in jet fuel prices and ongoing airspace closures, which have rendered several routes unprofitable. The airline’s CEO and Managing Director, Campbell Wilson, conveyed the decision to staff on Friday, highlighting the financial strain caused by these combined challenges.
According to Wilson, the sharp increase in jet fuel prices and the closure of certain airspace-particularly over the Middle East-have severely impacted the airline’s operations. As a result, the company has been forced to reduce its flight schedule for June and July, following a previous reduction for April and May.
"We deeply regret the inconvenience caused to our passengers and crew. Unfortunately, these difficult circumstances leave us no choice but to further scale back our international operations," said Wilson. "We hope the situation in the Middle East stabilizes soon, allowing us to return to normal service."
In its most recent financial report, Air India revealed a staggering loss of over Rs 22,000 crore in the fiscal year 2025-26. The airline is now battling against rising operational costs and fluctuating demand in the wake of geopolitical tensions, particularly the conflict between the United States and Iran, which has contributed to disruptions in global oil supply chains.
Surge in Jet Fuel Prices
The cost of Aviation Turbine Fuel (ATF), a key operating expense for airlines, saw another sharp increase this week, with international jet fuel prices rising by 5 percent. This hike follows a similar price adjustment last month, driven by instability in the Middle East and the ongoing conflict in the region. As of Friday, the price of ATF in Delhi stands at USD 1,511.86 per kilolitre, a rise of USD 76.55 per kilolitre (5.33%).
Domestic jet fuel prices have remained unaffected by this hike, but airlines are still facing financial strain due to the sharp uptick in international fuel costs.
"We are closely monitoring the situation and hope for a de-escalation of tensions in the Middle East, which would help us stabilize operations and restore our flight schedules," Wilson added.
Since the deregulation of jet fuel prices over two decades ago, airlines have been subject to fluctuations in international fuel rates, which are aligned with global price benchmarks.
The airline remains hopeful that the geopolitical landscape will stabilize in the near future, allowing Air India to return to a more regular flight schedule. However, for now, the airline has no choice but to implement these temporary cuts to stay afloat.
