Air India to cut 100 flights due to soaring fuel prices – Economic Times
Air India will cut about 100 flights across international routes starting from June, the Economic Times reported on Friday.
India’s second-largest carrier, which was privatized and bought by Tata Group in 2022, operates roughly 1,100 daily flights. The steepest reductions are expected on long-haul international routes to Europe, North America, Australia, and Singapore, where fuel consumption is highest.
An unidentified Air India official told the outlet that the airline is currently unable to recover operating costs on a large number of flights. The carrier has already accumulated losses of about $2.1 billion, the report noted, with its finances hit hard since the closure of Pakistan’s airspace following the military standoff in May 2025.
The closure has forced Indian carriers to take longer routes, significantly increasing operating costs.
The report comes amid an industry-wide plea by Indian airline companies for the federal government to intervene, as surging ATF (Aviation Turbine Fuel) prices threaten their commercial viability.
On Friday, India announced hikes for jet fuel prices for international airlines. However, it maintained that there was no change in ATF prices for domestic airlines.
Earlier in April, India raised fuel prices for international flights while only slightly increasing rates for domestic routes. The hike for domestic carriers was capped due to a government intervention, which directed state‑run oil marketing companies to limit the increase to 25%.
The retail prices of petrol, diesel, and domestic LPG (14.2 kg cylinders) have remained unchanged, fully insulating domestic consumers from the recent increase in international fuel prices. No change in prices of domestic LPG (14.2 kg) for 33 crore domestic LPG consumers. No…
— ANI (@ANI) May 1, 2026
Fuel accounts for up to 40% of an airline’s operating costs and seemingly minor price hikes impact profitability, making tickets more expensive.
Jet fuel prices in India have soared past the $2,140 per kiloliter mark amid the ongoing Middle East conflict, well above the previous high of $1,180 per kiloliter recorded in 2022 after the outbreak of the Ukraine crisis.
Globally, jet fuel prices averaged $179 per barrel, an over-80% increase from the $99 per barrel level observed in late February 2026.
More than 15,400 flights operated by Indian carriers were canceled from February 28 to April 24. Airlines are now operating just 50-55 flights per day to the Middle East, compared to nearly 200 daily services earlier.
India is the world’s third-largest domestic aviation market. The sector provides more than 369,000 jobs directly and 7.7 million indirectly, according to official figures.
