Air India will reduce its international flight operations through June and July as a sharp rise in aviation turbine fuel (ATF) prices and ongoing airspace restrictions have made several routes unprofitable, according to an internal communication accessed by India Today.
Air India CEO and Managing Director Campbell Wilson told staff that the airline has “no choice but to trim schedules in June and July” amid mounting operational challenges. The airline has already reduced some flying in April and May due to the “massive rise in jet fuel prices,” combined with airspace closures and longer flying routes.
The move comes days after India’s airline industry has sought urgent government intervention as a sharp rise in jet fuel prices begins to strain operations and push up costs. In a letter to the Civil Aviation Ministry, the Federation of Indian Airlines (FIA), which represents carriers such as Air India, IndiGo and SpiceJet, warned that the sector is facing “extreme stress” due to soaring aviation turbine fuel (ATF) prices.
The surge in ATF prices, driven by the broader impact of the Middle East war, along with adverse currency exchange rates and restricted airspace, has significantly affected Air India’s international operations. Many international routes have become unviable, forcing the airline to scale back services.
Aviation fuel, which typically accounts for around 30–40% of airline costs, has now risen to as much as 55–60% of operating expenses, according to the industry.
Airspace restrictions following the West Asia conflict have compelled Air India to take longer routes for several international destinations, leading to higher fuel burn and increased costs. Wilson described the situation as “extremely challenging” and said it has left the airline with limited options.
While domestic flight profitability has also taken a hit, government intervention has helped reduce the degree of impact on those operations.
In his message to employees, Wilson sought “continued solidarity” from staff as the airline navigates the crisis. He acknowledged the disruption caused to passengers and crew schedules, expressing hope that the situation in the Middle East stabilises soon and that key routes, including the Strait of Hormuz, reopen.
Air India Group is estimated to have incurred losses of over Rs 22,000 crore in the financial year ending March 31, 2026. Wilson, who has announced plans to step down later this year, said the airline will aim to return to normal operations once fuel prices ease and airspace constraints are lifted.
