Tata Group-owned Air India has begun cutting flights and tightening spending as the ongoing conflict in West Asia raises operating costs and weakens travel demand, according to a report in The Times of India on Wednesday.
The report said the airline plans to cut nearly 200 flights a week from June to August, in addition to around 90 flights already cut in May. The cuts are expected to affect several international routes, particularly long-haul services, as airlines continue to face disruption due to limited airspace and rising fuel prices.
Escalating geopolitical tensions in West Asia have forced airlines around the world to reroute flights to avoid conflict-affected regions. These diversions increased flight time, fuel consumption, and crew costs. For Indian carriers such as Air India, the pressure has been particularly acute as international operations form a major part of their network expansion strategy.
Rising fuel costs and weaker demand are increasing pressure on operations
According to a TOI report, Air India operates nearly 1,200 flights a day and is facing significantly higher fuel costs for aircraft turbines along with a weakening rupee, both of which have increased operating costs. The airline reportedly closed fiscal year 26 with losses of more than ₹22,000 crore, leading management to explore broader cost control measures. These include lower performance-related bonuses, tighter controls on discretionary spending and a more detailed review of operational efficiency.
The report said demand on some international routes eased as travelers delayed or reassessed their travel plans due to rising airfares and conflict-related uncertainty. Industry leaders quoted by TOI said the combination of high fuel prices, fluctuating currency movements and geopolitical risks has created a difficult operating environment for airlines across the world.
Air India is in the midst of a major transformation program since its takeover by the Tata group in 2022. The airline has placed record aircraft orders, expanded international connectivity and modernized fleet and cabin services as part of its turnaround strategy. However, new challenges arising from the crisis in West Asia are now increasing pressure on profitability and operations, the report said.
The airline has not yet officially announced the full extent of the proposed cuts.
