Amid mounting fuel costs, Air India has announced a reduction of at least 100 international flights per week through July 2026. The airline has scaled back operations on several key international routes, including Mumbai–New York, Delhi–Newark, Delhi–Chicago and Mumbai–Singapore. 

Rising geopolitical tensions have compelled airlines globally to reroute flights, leading to longer travel times, higher fuel burn, and increased crew costs. For Indian carriers such as Air India, the impact has been more pronounced, as international operations are central to their network expansion plans. 

Earlier in May, Air India had cut around 90 flights daily. Rising geopolitical tensions have pushed airlines worldwide to reroute flights, leading to longer flying times, higher fuel consumption, and increased crew costs. 

Iran war adding to the pressure 

The closure of Pakistani airspace following the Pahalgam terror attack and Operation Sindoor was the first setback to Air India’s westbound operations, followed by the Iran conflict, which has made another 40% of these corridors unusable. 

These restrictions have forced route diversions and led to technical halts for existing ultra long-haul flights to the US, including stops in Vienna and Rome. 

Rising fuel costs impacting Air India’s overall operations 

According to reports, Air India operates nearly 1,200 flights a day and has been dealing with sharply higher aviation turbine fuel costs along with a weakening rupee, both of which have pushed up operating expenses. 

The airline is said to have closed FY26 with losses exceeding ₹22,000 crore, prompting the management to look at wider cost-control measures. These include reducing performance-linked bonuses, tightening discretionary spending, and closely reviewing operational efficiency. 

Air India has been undergoing a major transformation since the Tata Group took over the airline in 2022. As part of its turnaround plan, it has placed record aircraft orders, expanded international routes, and upgraded its fleet and cabin experience. However, fresh challenges stemming from the West Asia crisis are now putting added pressure on both profitability and operations, the report said. 

The airline has not yet officially disclosed the full extent of the proposed cuts. 

PM’s call to reduce international travel 

On Sunday, Prime Minister Narendra Modi urged citizens to practise frugality, avoid international travel, cut back on gold purchases, and consider working from home. Air India’s moves align with this approach, as it looks to trim loss-making routes to contain cash burn while also reflecting the Prime Minister’s guidance.