Air India will cut around 100 flights a day, citing a spike in aviation turbine fuel (ATF) prices that has made several routes financially unviable. The move, announced on Friday, affects both domestic and international services and represents one of the airline’s most significant capacity reductions in recent years.
The Tata Group-owned carrier currently operates around 1,100 flights a day, so the cuts amount to almost 10% of its schedule. The steepest cuts are expected on long-haul international routes to Europe, North America, Australia and Singapore, where fuel consumption is highest and margins are under pressure.
Key corridors connecting Delhi and Mumbai with London, Paris, New York, Toronto, San Francisco, Sydney and Melbourne are likely to see fewer flights. Even markets with strong demand, such as Singapore, may face cuts, signaling a shift from network expansion to route-level profitability.
The decision comes amid a dramatic rise in global jet fuel prices. Industry data shows that average ATF prices have jumped nearly 80% in recent weeks, significantly increasing operating costs. Fuel accounts for up to 40% of an airline’s costs, making profitability highly sensitive to price fluctuations.
The problem is geopolitical disruption. According to industry tracker Whalesbook, airspace restrictions have forced airlines to use longer fuel-intensive routes, particularly for flights to Europe and North America. These detours can add hours to the flight time and further strain already thin margins.
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Industry bodies such as the Federation of Indian Airlines (FIA), which represents major carriers including IndiGo, Air India and SpiceJet, have warned that further service suspensions could follow unless the government intervenes. Airlines have called for relief measures such as a reduction in excise duty and value-added tax on jet fuel, which remains among the highest globally in India.
While the government rolled back the recent increase in domestic fuel prices, international routes have not seen similar relief, exacerbating cost pressures. Airlines say that without political support it could become increasingly difficult to maintain long-haul operations.
The development also highlights ongoing financial challenges at Air India, which continues to undergo a multi-year turnaround within the Tata group following its acquisition in 2022. Rising fuel costs, combined with legacy losses and competitive pressures, are forcing the airline to recalibrate its network and prioritize profitable routes.
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With fuel prices expected to remain volatile in the near term, industry experts believe airlines may increasingly resort to cutting capacity, raising prices and optimizing routes to manage costs. For passengers, this could translate into higher ticket prices and limited flight options on key international sectors in the coming months.
What this means for flyers and the aviation industry
Air India’s move is not an isolated case, it reflects a wider global trend in aviation. Airlines around the world are already scaling back growth or cutting routes as fuel prices soar due to geopolitical tensions, particularly in the Middle East.
For Indian travelers, the immediate impact is likely to be higher airfares, especially on long-haul routes where the cuts are concentrated. The reduced frequency also means less flexibility in travel planning and potentially longer layovers.
