Air India is all set to cut its international flights till July because of a surge in jet fuel prices and the ongoing airspace restrictions that made several routes unprofitable, said the firm’s Chief Executive Officer (CEO) and Managing Director (MD) Campbell Wilson on Friday.
In a message to the staff, Wilson said the hike in jet fuel rates and the closure of certain airspace has made the situation extremely difficult for the airlines that is already in losses. This situation has left Air India with no choice but to “further trim schedules for June and July”.
According to news agency PTI, Air India incurred more than Rs 22,000 crore losses in financial year (FY) 2025-26.
“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.
“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 added.
The hike in jet fuel rates
Earlier on Friday, the rates of Aviation Turbine Fuel (ATF), commonly called jet fuel, was hiked by 5 per cent for international flights. This was the second such hike in two straight months since the war started in the Middle East between the United States (US) and Iran disrupting global supply chains. However, there is no change in domestic ATF rates.
According to state-owned oil firms, the ATF is now priced at USD 1511.86 per kilolitre in Delhi, which is a hike of USD 76.55 per kilolitre or 5.33 per cent. This follows the doubling of rates on April 1. On that day, rates for domestic airlines were hiked by 25 per cent to Rs 104,927.18 per kilolitre.
Jet fuel prices were deregulated more than two decades ago, and since then, the rates have been aligned with benchmark international prices, as per a written understanding with the airlines.
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