Air India to Further Reduce Flight Schedules Amid Capacity Cuts

Air India Cuts Flights Amid Fuel Price Spike and Middle East Crisis

Air India has reduced flights in April and May, with further schedule trims planned for June and July, as a sharp increase in fuel prices and airspace constraints linked to the Middle East crisis weigh on operations.

The airline's CEO, Campbell Wilson, acknowledged the difficult operating environment in an internal communication to employees. Air India has tried to offset rising costs through fare increases and fuel surcharges, but higher ticket prices are beginning to hit demand. Fuel accounts for up to 40% of an airline's expenses, making profitability highly sensitive to price fluctuations.

The airline's decision to reduce flights is a result of a "massive rise in jet fuel prices," which, together with airspace closures and longer flying routes, has caused many of its international flights to become unprofitable to operate. Domestic operations have also been affected, but the impact has been relatively lower due to caps on fuel price increases.

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Table: Global Jet Fuel Prices

Jet fuel prices have surged nearly 80% in recent weeks, climbing to $179.46 per barrel in the week ended April 24 from $99.40 at the end of February. This spike in fuel prices is not an isolated case, but rather a broader global aviation trend. Airlines worldwide are already scaling back growth or trimming routes as fuel costs spike due to geopolitical tensions, particularly in the Middle East.

Air India's move will likely have an immediate impact on Indian travellers, with higher airfares, especially on long-haul routes where cuts are concentrated. Reduced frequency also means less flexibility in travel planning and potentially longer layovers.

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Despite near-term pressures, Air India's long-term transformation programme continues to gather pace. The airline is progressing with fleet modernisation, including retrofitting and induction of Boeing 787 aircraft, and integration of former Vistara planes. Air India has also launched services to Hanoi, its second destination in Vietnam after Ho Chi Minh City, and secured approval for a hub-and-spoke model to improve connectivity from smaller Indian cities.

The airline's efforts have drawn global recognition, with multiple wins at the Aircraft Interiors Expo 2026 and a 4-star Skytrax rating for both Air India and Air India Express. "Notwithstanding the near-term challenges, we continue to push forward with our longer-term transformation program," Wilson said, highlighting continued investments even as the airline navigates geopolitical and cost pressures.