Travel plans at risk? Air India cuts flights amid rising costs

Air India CEO and Managing Director Campbell Wilson told staff that the airline has “no choice but to trim schedules in June and July” amid mounting operational challenges, reported India Today.

The carrier had already scaled back some services in April and May amid rising jet fuel costs and restricted flight paths.

Industry flags pressure from rising fuel costs

India’s aviation sector has raised concerns over sustained increases in fuel prices, warning of potential disruptions across multiple carriers.

Airlines, represented by the Federation of Indian Airlines, have approached the government seeking urgent intervention as ATF prices climb amid global geopolitical tensions.

Leading carriers, including IndiGo and SpiceJet, have cautioned that escalating fuel costs could make several routes financially unviable.

In a communication to the Civil Aviation Ministry, the industry body warned that any sharp or disproportionate increase in ATF prices could lead to significant financial strain, potentially resulting in grounded aircraft and flight cancellations.

Fuel typically accounts for 30–40% of airline operating expenses, and the recent surge has intensified pressure on already tight margins.

Mixed signals on fuel pricing

On May 1, prices of commercial LPG (19 kg cylinders) were raised by ₹993, taking the cost in Delhi to ₹3,071.50, amid volatility in global energy markets linked to the Iran–US tensions.

However, there was no change in domestic LPG (14.2 kg) prices, offering relief to household consumers.

State-run Indian Oil Corporation said retail prices of petrol, diesel and domestic LPG remain unchanged, covering nearly 90% of total fuel consumption.

The company added that while ATF prices for domestic airlines have remained stable, rates for international airline operations, along with bulk diesel, have been revised upward.

“Overall, approximately 80% of petroleum products have seen no price change, ensuring stability for most consumers,” the company said, adding that about 4% of products have witnessed price reductions in line with global trends.