Air India Cuts Flights Amid Rising Jet Fuel Costs

Impact of Rising Jet Fuel Prices on Air India

The soaring prices of jet fuel have severely impacted the Indian aviation industry, leading to noticeable changes in flight operations. In response to escalating costs, Air India has decided to reduce its daily flights by approximately 100. This reduction will affect both domestic and international routes, particularly those to Europe, North America, Australia, and Singapore. As of today, May 1, 2026, the ongoing conflict in the Middle East has contributed to a spike in global oil prices, resulting in a rise in jet fuel costs to $76.55 per kiloliter for international airlines.

The continuous increase in aviation turbine fuel prices has made it challenging for airlines to maintain operations. Consequently, Air India has made the significant decision to cut around 100 flights daily. Currently, the airline operates about 1,100 flights each day, but substantial reductions are planned for the June schedule, especially on international routes where fuel costs are highest. According to industry sources, the fluctuating prices of jet fuel have profoundly affected airline profitability. In Delhi, the price of aviation turbine fuel has nearly doubled since March, leading to a rapid increase in operating costs.

The Federation of Indian Airlines, which includes Indigo, Air India, and SpiceJet, has already warned the government that without measures to reduce costs, services may need to be suspended. Although the government provided some relief for domestic routes in April, no significant actions have been taken for international operations. A senior Air India official noted that the airline is unable to recover its costs on several routes, making flight reductions a necessity. Additionally, the closure of Pakistani airspace has exacerbated the situation, forcing flights to Europe and North America to take longer routes, which increases both fuel consumption and crew expenses.

Financial Losses Faced by Air India

Globally, jet fuel prices have surged significantly, reaching an average of $179.46 per barrel by the end of April, which is nearly 80% higher than in February. Since fuel accounts for about 40% of an airline's total costs, any increase directly impacts ticket prices and service availability. Air India has already incurred losses exceeding ₹20,000 crores, intensifying the pressure on the Tata Group and Singapore Airlines to help the airline recover from its financial difficulties.