Winning Bizness Desk
Mumbai.Air India has announced a major reduction in its international operations for the June-to-August period, suspending flights on six overseas routes and reducing frequency on 23 others. The Tata Group-owned airline said rising jet fuel prices and restrictions on several international airspaces have made many long-haul routes financially difficult to operate.
The move affects some of the airline’s busiest sectors, including Delhi-Chicago and Mumbai-New York. The decision comes at a time when the carrier is already battling mounting losses and restructuring challenges under its ongoing revival plan.
Routes suspended till August period
The airline confirmed that services on the following international routes will remain suspended during the three-month schedule window:
- Delhi to Chicago
- Mumbai to New York
- Delhi to Shanghai
- Chennai to Singapore
- Mumbai to Dhaka
- Delhi to Male
Apart from these routes, Air India has also reduced the number of flights on 23 other international sectors. Company officials said the decision was taken after reviewing operational costs and falling route profitability.
War and oil prices disrupt aviation sector
The ongoing conflict involving the United States and Iran has severely affected global aviation operations. Several countries have imposed airspace restrictions, forcing airlines to take longer routes to Europe and North America. This has increased flight duration and fuel consumption significantly.
At the same time, global crude oil prices have jumped sharply, pushing Aviation Turbine Fuel prices to record levels. Air India, which is already running under financial pressure, has found it increasingly difficult to continue operations on expensive international routes.
Industry officials said airlines are now spending much more on fuel than before.
- Fuel earlier formed around 40% of operational costs
- That share has now touched nearly 60%
- Longer flying routes are adding extra fuel burden
- International operations are becoming financially unstable
Crude oil rises over past two months
According to industry estimates, crude oil prices have increased by nearly 45.5% since February 28 because of tensions between the US and Iran. Although the government capped the rise in domestic ATF prices at 25%, international fuel costs continued to remain very high.
Oil marketing companies raised domestic ATF prices by around 9.2% in April, but airlines operating global routes have seen a much sharper increase in expenses.
Despite the cuts, Air India said it will continue operating more than 1,200 international flights every month.
Its remaining schedule includes:
- 33 weekly flights to North America
- 104 weekly flights to Europe and the UK
- 158 weekly flights to South-East Asia and SAARC nations
- 8 weekly flights to Australia
- 7 weekly flights to Africa
Losses add pressure on Tata Group
The flight reductions are being seen as part of Air India’s larger cost-cutting strategy. The airline recently reported a record loss of Rs 220 billion for the financial year ending March 31. The company is also searching for new leadership after CEO Campbell Wilson stepped down.
The Tata Group is simultaneously investing heavily in new aircraft orders and upgrading old cabins to modern standards. However, these investments are currently putting pressure on the balance sheet.
Air India is also facing rising maintenance costs because of its ageing Boeing fleet. In addition, expenses linked to its merger process with Singapore Airlines have added further strain, making operational recovery more challenging for the airline.
