Air India is set to cut around 100 flights a day across domestic and international routes as soaring jet fuel prices put pressure on airlines to scale back operations.
Confirming the trims in airline schedule, sources from Air India told Financial Express online that flights are being trimmed going forward and bookings will be adjusted. The officials also said that the passengers will be refunded of their fare tickets, reschedule the flights and the passengers will be “taken care of”.
The airline officials also said that this will not lead to any additional fare hike and the ATF price hikes have already been factored in.
On Friday, Air India CEO Campbell Wilson, in an internal note to employees, said that the airline has reduced flights in April and May and will further trim schedules in the coming months, as a sharp spike in fuel prices and airspace constraints linked to the Middle East crisis weigh on operations. He also addressed his employees about the difficult operating environment and said, “Many of you will have noticed that we have reduced some flying for April and May.”
The outgoing CEO further said that the move was necessitated by a “massive rise in jet fuel prices which, together with airspace closures and longer flying routes, has caused many of our international flights to become unprofitable to operate.
Spike in fuel price, weak demand force capacity cuts
Wilson further said that the airline tried to offset rising costs through fare increases and fuel surcharges, but higher ticket prices are beginning to hit demand.
“We have increased airfares and imposed fuel surcharges but… these higher airfares impact customer demand, so we can only raise fares so far before people decide to stay home,” Wilson said.
Reportedly, the impact has been relatively lower due to caps on fuel price increases, while domestic operations have also been affected. However, with the situation persisting, Air India is preparing for deeper cuts.
“The airspace and jet fuel price situation remains extremely challenging, leaving us no choice but to further trim schedules for June and July,” Wilson said, adding that the airline regrets the untimely disruption to passengers.
In April this year, India’s leading airlines issued an urgent appeal to the Ministry of Civil Aviation. The Federation of Indian Airlines (FIA), which represents Air India, IndiGo and SpiceJet, addressed the rising aviation turbine fuel (ATF) prices, warning that the current cost environment could threaten the viability of operations across the sector.
In a letter, the airlines called for immediate intervention from the ministry, stating that “urgent support is required for ATF pricing to continue airline operations.” It also cautioned that the carriers are facing financial strain, describing the situation as the sector being “under extreme stress.”
Airlines respond differently to ATF price hike
Meanwhile, Indian carriers are responding differently to a fresh spike in ATF prices, with IndiGo holding its international expansion plans as Air India is trimming capacity across key routes to contain costs.
IndiGo has continued its European services operations using six wet-leased Boeing 787-9 aircraft from Norse Atlantic Airways, under an agreement that covers aircraft, cockpit crew and maintenance, while the Indian carrier manages cabin crew and ticketing.
The airline is also restoring routes affected by the West Asia crisis and expanding selectively. It has resumed Doha services using wet-leased Airbus A321neo aircraft from Qatar Airways, launched Chennai–Réunion flights, and continues operations to Athens using its own Airbus A321XLR. Additional long-haul routes are planned as more aircraft join the fleet.