Air India has cut about 100 daily flights, roughly 10% of its schedule of around 1,100 flights, as surging jet fuel prices make many routes unviable. CEO Campbell Wilson stated in an internal note to employees that the carrier reduced services in April and May and will trim schedules further through June and July.
The reductions hit long-haul international routes hardest, including key corridors from Delhi and Mumbai to London, Paris, New York, Toronto, San Francisco, Sydney, and Melbourne, as well as Singapore. West Asia airspace closures due to conflict force longer flight paths, boosting fuel consumption on these high-burn routes.
Wilson noted that despite airfare increases and fuel surcharges, higher prices curb demand. Aviation turbine fuel prices have spiked, with the refining crack spread jumping from $11-18 per barrel to over $130, pushing rates above crude oil trends that rose from $72 to $118 per barrel. A senior Air India official said most flights fail to cover operating costs, with more cuts possible if pressures persist. The Federation of Indian Airlines, representing Air India, IndiGo, and SpiceJet, has warned of extreme sector stress.