Under pressure from expensive jet fuel, Air India has taken a major step by deciding to reduce its daily flights by 100, which will result in drastic cuts to services on international routes.
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Soaring jet fuel prices have crippled the Indian aviation sector, and the direct impact is now becoming visible in flight operations. Under mounting cost pressures, Air India has decided to curtail approximately 100 flights daily. These reductions will apply to both domestic and international routes. Specifically, significant service cuts are expected on routes connecting to Europe, North America, Australia, and Singapore. Today—May 1, 2026—the price of Aviation Turbine Fuel (ATF) for international airlines saw an increase of US$ 76.55 per kilolitre, driven by a surge in global oil prices resulting from the ongoing conflict in the Middle East.
The persistently rising cost of jet fuel—or Aviation Turbine Fuel (ATF)—has made it increasingly difficult for airlines to sustain their operations. Bowing to this pressure, Air India has taken a major decision to reduce its daily flight schedule by approximately 100 flights. Currently, Air India operates around 1,100 flights daily; however, preparations are underway for substantial cuts in the June schedule, particularly on international routes. Services will be scaled back on key routes such as those to Europe, North America, Australia, and Singapore—regions where fuel costs constitute the highest proportion of operating expenses. According to industry sources, the continuous volatility in jet fuel prices has had a profound impact on airline profitability. In Delhi, the price of ATF has nearly doubled compared to March levels, leading to a rapid escalation in operating costs.
The Federation of Indian Airlines (FIA)—comprising IndiGo, Air India, and SpiceJet—has already warned the government that unless measures are taken to mitigate costs, airlines may be forced to suspend services. Although the government provided some relief for domestic routes in April, no significant measures have been implemented to address the challenges facing international operations. According to a senior Air India official, the airline is currently unable to even recover its operating costs on several routes. Consequently, curtailing flights has become an unavoidable necessity. A major factor further exacerbating the situation is the closure of Pakistani airspace. As a result, flights bound for Europe and North America are having to take longer routes, leading to increased fuel consumption and crew costs.
Air India Incurs Significant Losses
Globally, jet fuel prices have witnessed a massive surge. By the end of April, the average price reached $179.46 per barrel—an increase of nearly 80% compared to February. Since fuel accounts for approximately 40% of an airline’s total operating costs, a rise in its prices has a direct impact on ticket fares and services. Air India has already incurred losses exceeding ₹20,000 crore. Consequently, the pressure on the Tata Group and Singapore Airlines to steer the airline out of its financial crisis is mounting.
