Air India to restore most flights from September after months of disruption

New Delhi: Air India will begin restoring most of the domestic and international capacity it cut since April from September, as geopolitical tensions ease, jet fuel prices stabilise and more aircraft return to service.

The move marks the airline's first major capacity restoration after months of schedule cuts triggered by airspace closures over Pakistan and West Asia, aircraft shortages, and longer flying times to Europe and North America.

"September onwards most of the flights are already on sale. They were never withdrawn," Air India's chief commercial officer, Nipun Aggarwal, said on Friday, on the sidelines of an event organised by the Federation of Associations in Indian Tourism & Hospitality (FAITH).

Data from the Directorate General of Civil Aviation (DGCA) showed that the Tata-backed Air India's international departures fell 22% year-on-year during April and May, while domestic departures declined about 5%. This does not include low-cost subsidiary Air India Express’s numbers.

Aggarwal said geopolitical uncertainty remains the airline's biggest operational risk. "Pakistan (airspace closure) is the biggest issue. We have no visibility on that. We're trying to rebalance wherever we can,” he said, adding that reopening Iran and Iraq airspace would provide significant relief for the carrier’s westbound operations.

The closure of Pakistani airspace, followed by the conflict in West Asia, forced Air India to operate longer routes to Europe and North America, increasing fuel consumption and reducing aircraft utilization. Higher aviation turbine fuel prices, which nearly doubled between late February and May, added to the pressure.

Fuel prices, however, have eased in recent weeks. According to the International Air Transport Association's (IATA's) weekly fuel monitor, average jet fuel prices fell to $127.06 a barrel in the week ended 10 July from $138.86 a barrel four weeks earlier.

"It will not be as bad as it was in March and April. Hopefully it doesn't get to that level," Aggarwal said.

Europe is expected to see the biggest restoration, with most of the frequency cuts announced in May likely to be reversed. The airline had earlier reduced services on routes including Delhi-Paris, Delhi-Copenhagen, Delhi-Milan, Delhi-Vienna, Delhi-Zurich and Delhi-Rome.

DGCA data showed Air India operated about 2,300 fewer international departures during April and May compared with the corresponding period last year.

"Wherever we have taken frequency cuts, mostly everything will be back. There may be one or two routes here and there. But by and large, everything will be restored," Aggarwal said.

However, some North American routes will continue to remain affected. Chicago will remain suspended for now, while Washington will continue operating at lower frequencies because several Boeing 777 aircraft are undergoing cabin retrofits.

The airline has also retired several Boeing 777-200LR aircraft while deliveries of new Boeing jets have been delayed, constraining fleet availability.

"We don't have the same number of aircraft. The aircraft that we were supposed to get have been delayed. The older aircraft were retired," Aggarwal said.

Delayed aircraft deliveries, a fleet retrofit programme and supply-chain constraints also reduced aircraft availability. Besides, the airline also faced heightened regulatory scrutiny following the fatal Boeing 787 crash near Ahmedabad in June.

The disruptions have also weighed on the airline's finances. Air India is expected to post a loss of nearly $3 billion (more than ₹25,000 crore) for FY26, although the privately held carrier is yet to announce its results. The airline is also preparing for a leadership transition, with chief executive Campbell Wilson set to step down in September.

Air India ended FY25 with 180 aircraft, while its low-cost subsidiary had 110, bringing the fleet to around 290 planes. At present, its operating fleet is said to be down around 220, as per industry executives.

Despite the disruptions, passenger demand has remained resilient, particularly in the domestic market. Aggarwal expects airfares to moderate as capacity returns and fuel prices remain under control.

"As supply comes back and oil prices move down, airfares should move down as well. We don't fix the airfare. The market determines at which price point each ticket is sold," he said.

According to aviation analyst Mark D. Martin, chief executive at consultancy firm Martin Consulting, Air India's ability to restore capacity from September will be a key test of its operational recovery.

“While easing geopolitical tensions should improve aircraft utilisation, Air India’s biggest concern will be navigating the detour as a result of Pakistan airspace closure. That’s where other European and Middle Eastern carriers have an advantage,” he said.

Jainam Shah, aviation analyst at brokerage firm Equirus Securities said that the pace of restoration will ultimately depend on timely aircraft deliveries from Boeing and the completion of the airline's fleet retrofit programme.

“Any renewed escalation in West Asia could once again disrupt schedules and delay the return to normal operations,” he said.