If you are planning an international trip this summer, you may want to double-check your flight options. Air India is set to reduce some of its overseas services in the coming weeks, as rising fuel costs and global disruptions begin to bite.
Air India will scale back its international flight operations through June and July. The decision comes after a sharp jump in aviation turbine fuel (ATF) prices, along with ongoing airspace restrictions that have made several routes less viable.
In an internal message, CEO and Managing Director Campbell Wilson said the airline has “no choice but to trim schedules” given the current situation. Some cuts had already begun in April and May, as fuel prices climbed sharply and flying conditions became more challenging.
Fuel is one of the biggest expenses for airlines. Normally, it makes up about 30–40% of operating costs. But now, that share has risen significantly, in some cases touching 55–60%, as per industry.
This spike is largely linked to tensions in the Middle East, which have pushed up global oil prices. At the same time, restricted airspace has forced airlines to take longer routes, increasing fuel use and costs further.
Experts say this is not just a short-term issue. Sunil Kadam, Executive Vice President, Airlines & General Aviation, Commercial Risk Solutions, India, Aon, believes the problem runs deeper.
“The situation Indian airlines are facing highlights how fuel price volatility has become a structural risk rather than a short term shock for the aviation sector,” he said.
He explained that rising oil prices, combined with geopolitical tensions and operational limits, are putting immediate pressure on airlines.
“When global oil prices rise sharply, and those increases are compounded by geopolitical tensions in West Asia and airspace constraints, the financial impact is immediate,” he added.
04/05/2026 Jasmine Anand/India Today
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