Air India cuts international flights until July 2026 as fuel costs and airspace closures bite
Air India will reduce its international flight schedule by July as rising jet fuel prices and airspace restrictions linked to the conflict in West Asia push a growing number of routes to loss-making regions, the airline’s chief executive informed Air India staff, news agency PTI reported.
Air India Shortens International Schedule Amid Assembly Losses
Loss-making Air India will reduce international flight operations by July after rising jet fuel prices and airspace closures made many of its overseas routes financially unviable, chief executive and managing director Campbell Wilson confirmed on Friday.
The announcement comes at a time when the airline group is estimated to have recorded losses exceeding: ₹22,000 crore in the financial year ending March 31, 2026.
Why Air India is Cutting Flights: Fuel Costs and Longer Routes
Airspace restrictions resulting from the West Asian conflict have forced Air India to reroute a significant number of international services, adding significant distance and fuel consumption to journeys that previously took more direct routes. The result was a sharp increase in operating costs at a time when jet fuel prices were already rising rapidly.
Wilson addressed the situation directly in a message to staff. “We have reduced some flights for April and May… the huge increase in jet fuel prices, together with airspace closures and longer flight routes, has resulted in many of our international flights becoming unprofitable,” he said.
More Discounts Will Be Made in June and July Programs
Air India’s management does not expect conditions to improve in the near term. Wilson, who announced plans to resign later this year, described the combined impact of airspace restrictions and fuel price increases as “extremely challenging”, leaving Air India with little room for manoeuvre.
He added that the situation left the airline with no option “except to further shorten its June and July schedules.”
Air India Apologizes to Passengers and Crew for Inconvenience
Campbell Wilson acknowledged the wider impact of schedule cuts on both passengers and airline staff. “We deeply regret the disruption to our customers’ plans and our crew’s staffing, and hope that the situation in the Middle East improves and the Strait of Hormuz opens soon so that we can return to a more normal situation,” he said.
The reference to the Strait of Hormuz underlines the extent to which the ongoing regional conflict has increased the airline’s operational difficulties; flight path diversions add hours to travel times in many key international corridors.
Air India Group Cross Losses ₹22,000 Crore in FY 2026
Air India’s flight discounts further aggravate the already difficult financial situation for the Tata Group-owned carrier. Air India Group is estimated to have suffered losses of more than 200 thousand rupees ₹22,000 crore in the financial year ending March 31, 2026, as the airline continues its long and costly transformation following its privatization.
The airline was trying to rebuild its network, fleet and service standards after years of decline under state ownership. Renewed pressure from external factors, including conflict in West Asia and rising fuel costs, represents a significant setback to recovery efforts, with no clear timeline for a return to normal international operations.
