Air India has been asked to reduce its domestic operations starting next month due to rising fuel prices and increasing operational pressure. After cutting a number of international routes earlier this month, the airline reported almost 22% decrease in local flights. The action comes with rising jet fuel prices brought on by the ongoing conflict in the Middle East and ongoing airspace restrictions in Pakistan, which have increased the financial burden on Indian airlines.
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Fuel prices affect businesses
The most recent flight cuts come as Middle East tensions continue raising up the cost of jet fuel worldwide, which has a big impact on airline operations. Most of an airline’s operating costs come from fuel, which makes them raise price and change their timetables.
The restriction on Indian airlines using Pakistani airspace has also produced operational challenges for Air India, which recently reported a record yearly loss of more than $2 billion for the 2025–2026 financial year.
Air India said on Wednesday that it is continuing the prior announced cuts to foreign services while temporarily lowering numbers on a few local routes.
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In their statement, the airline said, “These adjustments are driven by the sustained impact of high fuel prices on overall operations. Air India will continue to monitor demand and operating conditions closely, with a view to restoring frequencies as conditions stabilise.”
The impact of Air India
Air India Express is also anticipated to cut about 10% of its domestic flights next month, according to people familiar with the situation. Almost 500 domestic flights are operated by the low-cost airline every day, and it is progressively restarting operations to West Asia.
