Rising Jet Fuel Costs Force Air India to Suspend Key International Routes
Due to pressure from skyrocketing jet fuel prices, Tata-owned Air India has made significant cuts to its international network for three months, beginning in June.
The cuts include the complete suspension of flights from its major hub in Delhi to important locations like Chicago, Newark, Singapore, and Shanghai.
There have also been fewer flights to places like Toronto, Paris, and San Francisco. The airline has cut about 100 flights each day overall.
For the week ending May 8, 2026, the average price of jet fuel worldwide was $162.89 a barrel, up from $99.40 at the end of February. Since fuel can make up as much as 40% of an airline’s operating expenses, even slight price changes have the potential to significantly reduce profitability and raise ticket prices.
Air India CEO Warns More Cuts May Follow if Fuel Prices Stay High
Campbell Wilson, the CEO of Air India, informed staff last week that the airline will keep cutting back on overseas services because airspace limitations and rising fuel prices have rendered numerous routes unprofitable.
He claimed that during the busiest travel season, the airline was forced to significantly reduce timetables. People are aware that if fuel prices stay high, there may be more flight reductions.
Why Air India Is Facing Bigger Challenges Than Rivals
Compared to rival IndiGo, Air India is taking a more severe hit. Due to the shutdown of Pakistani airspace, flights headed for Europe and North America were compelled to take longer routes, which resulted in a significant increase in fuel consumption and crew expenses. The cost has increased since flights to North American cities now have to stop at Vienna or Stockholm.
Owner Tata Sons and strategic partner Singapore Airlines are under increasing pressure to control expenses and bring the airline back to financial stability after it has already accrued losses of more than Rs 20,000 crore.
“On the majority of flights, we are not even making up the operational costs. We will have to make additional cuts if the growth continues,” a senior airline executive stated.
Indian Aviation Sector Seeks Government Support Amid Economic Pressure
The Federation of Indian Airlines, which represents IndiGo, Air India, and SpiceJet, issued a warning last month about potential service suspensions unless the government intervenes to lessen the financial load.
India has not provided any respite on foreign routes, despite reversing a sharp increase in domestic gasoline prices in early April. The cost of jet fuel in Delhi has doubled since March, and airlines caution that any more increases will render flights unfeasible.
Prime Minister Narendra Modi urged India’s 1.4 billion citizens to cut back on fuel, fertilizer, and travel expenditures on Sunday. This appeal for sacrifice struck like a thunderclap and highlighted the gravity of the country’s economic predicament brought on by the war in Iran.
| Category | Details |
|---|---|
| Airline | Air India |
| Owner | Tata Sons |
| Strategic Partner | Singapore Airlines |
| Main Issue | Rising global jet fuel prices |
| Duration of Flight Cuts | 3 months starting June 2026 |
| Flights Reduced | Around 100 flights per day |
| Routes Suspended | Delhi to Chicago, Newark, Singapore, Shanghai |
| Routes With Reduced Frequency | Toronto, Paris, San Francisco |
| Jet Fuel Price (May 8, 2026) | $162.89 per barrel |
| Jet Fuel Price (End of February 2026) | $99.40 per barrel |
| Fuel Share in Airline Costs | Up to 40% of operating expenses |
| Key Operational Challenge | Longer routes due to Pakistani airspace closure |
| Additional Stopovers | Vienna and Stockholm for North American flights |
| CEO Statement | More cuts possible if fuel prices remain high |
| CEO | Campbell Wilson |
| Estimated Losses | Over ₹20,000 crore |
| Rival Airline Mentioned | IndiGo |
| Industry Body Warning | Federation of Indian Airlines warned about possible further suspensions |
| Government Situation | No relief announced for international jet fuel costs |
| PM Statement | Narendra Modi urged citizens to reduce fuel and travel expenses |
| Major Cause of Crisis | High fuel costs + geopolitical tensions + airspace restrictions |
