Air India To Slash 100 Daily Flights Until July As Jet Fuel Costs Skyrocket

After having voiced its concern linked to surge in ATF or jet fuel prices, India's flag carrier airlines Air India has slashed its international flights schedule as the West Asia crisis and airspace restrictions makes longer routes a loss-making prospect, as per Air India's Chief Executive Officer Campbell Wilson, citing a PTI report. 

Air India CEO Campbell Wilson, in an internal note to employees, said that the passenger carrier has reduced flights in April and May and will further trim schedules in the coming months.

Further, he noted, “We have increased airfares and imposed fuel surcharges but… these higher airfares impact customer demand, so we can only raise fares so far before people decide to stay home."

This comes after Air India posted losses surpassing ₹22,000 crore in the financial year ended 31 March 2026.

The airline had been working to rebuild its network, fleet and service standards after years of decline under government ownership. The renewed pressure from external factors including the West Asia conflict and elevated fuel costs represents a significant setback to those recovery efforts, with no clear timeline for a return to normal international operations.

Recently, the Federation of Indian Airlines (FIA), which represents Air India, IndiGo and SpiceJet, warned that the aviation sector is under “extreme stress”, and several airlines are on the “verge of shutting down”, while seeking relief on fuel pricing.

Also Read: Petrol, Diesel Prices Likely To Increase Upto ₹5 Per Litre Across India

The FIA letter also proposed “crack band” pricing mechanism under which India's public sector OMCs would still recover higher crude costs along with reasonable refining margins.

The “crack spread” also known as the margins oil companies earn for refining crude into aviation turbine fuel (ATF), has surged dramatically from $11–18 per barrel earlier to over $130 per barrel now, triggering jet fuel rates above crude oil trends that rose from $72 per barrel to $118.