Air India cuts international flights until July 2026 as fuel costs and airspace closures bite

Air India will reduce its international flight schedule through July as soaring jet fuel prices and airspace restrictions linked to the West Asia conflict push a growing number of routes into loss-making territory, news agency PTI quoted the airline's chief executive informing Air India staff.

Air India Trims International Schedule Amid Mounting Losses

Loss-making Air India is reducing its international flight operations through July after a combination of surging jet fuel prices and airspace closures rendered many of its overseas routes financially unviable, chief executive and managing director Campbell Wilson confirmed on Friday.

The announcement comes as the airline group is estimated to have recorded losses exceeding ₹22,000 crore in the financial year ended 31 March 2026.

Why Air India Is Cutting Flights: Fuel Costs and Longer Routes

Airspace restrictions stemming from the West Asia conflict have forced Air India to reroute a significant number of international services, adding considerable distance and fuel burn to journeys that previously followed more direct paths. The result has been a sharp increase in operating costs at a time when jet fuel prices have already risen steeply.

Wilson addressed the situation directly in a message to staff. "We have reduced some flying for April and May...massive rise in jet fuel prices which, together with airspace closures and longer flying routes, have caused many of our international flights to become unprofitable to operate," he said.

June and July Schedules to Face Further Reductions

Air India's management does not expect conditions to ease in the near term. Wilson, who has announced plans to step down later this year, described the combined impact of airspace restrictions and fuel price increases as "extremely challenging," leaving Air India with little room to manoeuvre.

The situation leaves the airline with no choice "but to further trim schedules for June and July," he added.

Air India Apologises to Passengers and Crew for Disruption

Campbell Wilson acknowledged the wider impact of the schedule reductions on both travellers and airline staff. "We very much regret the disruption to our customers' plans and our crew's rosters, and hope that the Middle East situation settles and the Strait of Hormuz opens soon so that we can get back to a more normal state," he said.

The reference to the Strait of Hormuz underlines the extent to which the ongoing regional conflict is driving the airline's operational difficulties, with flight path diversions adding hours to journey times on several key international corridors.

Air India Group Losses Cross ₹22,000 Crore in FY2026

The Air India flight reductions compound an already difficult financial picture for the Tata Group-owned carrier. Air India Group is estimated to have incurred losses of more than ₹22,000 crore in the financial year ended 31 March 2026, as the airline continues its long and costly turnaround following its privatisation.

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.