Why Air India Cut International Flights And Which Routes Are Affected

Air India, one of India’s main airlines, says it will reduce some international flights from May to July 2026. The airline is facing difficulties due to increased costs and various issues. Many airlines worldwide are struggling. High fuel prices and global events are making things tougher. Air India is particularly affected. Currently the airline spends more than it earns on international flights. The company is losing heavily over twenty-two thousand crore rupees in FY26. Operating flight costs have surged by fifty percent. This is why Air India has decided to cut some flights. For now it will not operate in global cities. Air India faces challenges. Other Indian airlines are also having a hard time. The airline industry in India seems to be going through a phase.

Air India, as well as other airlines are trying to cope with these difficulties. The situation is tough, for Air India and similar airlines.

Why has Air India reduced its international flights?

One of the main reasons is that the price of aviation turbine fuel (ATF) has gone up a lot. This has made the cost of operating flights much higher. Airlines normally spend 30-40% of their money on fuel. But because the West Asia conflict has affected the supply of fuel in the world, airlines now have to spend about 55-60% of their money on fuel alone.

Another problem is that some airspaces over West Asia are closed because of the war. So, airlines like Air India have to take longer routes. This means they have to use more fuel, which makes them lose more money. Because of these problems, many of Air India’s flights to other countries are losing money. The CEO, Campbell Wilson, said that the airline has no choice but to cancel some of these flights.

What effects have longer routes had on operations?

Airspace closures have impacted flight efficiency in every way. For each flight, a longer route means greater fuel burn, longer crew duty hours, and higher maintenance costs. All this means increased expenses and reduced aircraft utilisation efficiency.

Especially for long-haul destinations, even a small increase in route length can have a major impact on cost structures. The passenger comfort factor and schedule disruptions must also be built in, making such routes commercially unattractive. This has impacted our decision to temporarily suspend or reduce frequencies on certain international sectors.

What are the international routes impacted?

Air India has confirmed that services to several major regions will be scaled back, particularly in June and July. These include: Europe: Select flights to key cities are expected to see reduced frequency. North America: Some long-haul routes, already among the most fuel-intensive, will be trimmed. Australia: Limited adjustments due to high operational costs on ultra-long-haul routes. Singapore: Even short-to-medium haul international routes are being rationalised due to cost pressures.

Most of the time, the airline does not announce all of the routes that are affected. The cuts most likely target those sectors that have become the least profitable.

Why isn’t the airfare hike working?

Air India has tried to offset the high operational costs by charging more for tickets and fuel surcharges. But, there is only so much fare that can be increased before passenger demand starts to drop, especially for a price sensitive market like India.

As Campbell Wilson pointed out, there is only so much one can charge before travellers decide not to travel anymore, or start flying with a different airline. And this elasticity of demand has prevented airlines from passing on their increased operational costs to their customers.

What does this mean for the aviation industry?

The episode reflects the dire straits that the Indian aviation industry finds itself in. Industry lobby groups like the Federation of Indian Airlines have already noted that current oil prices are making the industry “completely unviable.” Air India’s decision could also push other airlines to cut their international operations. If oil prices remain high, and geopolitical tensions don’t ease, we could see more aviation capacity being cut across the industry.

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