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Air India is reducing weekly flights and tightening spending as the West Asia conflict drives up fuel costs, increases flying time and weakens passenger demand, according to media reports. The airline is also facing pressure from a weaker rupee and rising operating expenses.
Air India cuts flights, tightens costs as West Asia conflict raises fuel pricesTata Group-owned Air India has started reducing flights and tightening spending as the ongoing conflict in West Asia pushes up operational costs and weakens travel demand, according to a report by The Times of India on Wednesday.
The report said the airline is planning to cut nearly 200 weekly flights between June and August, in addition to around 90 flights already reduced in May. The cuts are expected to affect several international routes, particularly long-haul services, as airlines continue to face disruptions due to restricted airspace and rising fuel prices.
The escalating geopolitical tensions in West Asia have forced airlines across the world to reroute flights to avoid conflict-hit regions. These diversions have increased flying times, fuel consumption and crew costs. For Indian carriers such as Air India, the pressure has been particularly sharp because international operations form a major part of their network expansion strategy.
Rising fuel costs and weaker demand add pressure on operations
According to the TOI report, Air India operates nearly 1,200 flights daily and has been grappling with significantly higher aviation turbine fuel costs alongside a weakening rupee, both of which have inflated operating expenses. The airline reportedly closed FY26 with losses of more than ₹22,000 crore, leading the management to explore broader cost-control measures. These include lower performance-linked bonuses, tighter control on discretionary spending and a closer review of operational efficiency.
The report said demand across some international routes has softened as passengers delay or reconsider travel plans amid rising ticket prices and uncertainty linked to the conflict. Industry executives cited by TOI said the combination of high fuel prices, volatile currency movements and geopolitical risks has created a difficult operating environment for airlines globally.
Air India has been in the middle of a large-scale transformation programme since its takeover by the Tata Group in 2022. The airline has placed record aircraft orders, expanded international connectivity and upgraded fleet and cabin services as part of its turnaround strategy. However, the fresh challenges arising from the West Asia crisis are now adding pressure on profitability and operations, the report said.
The airline has not officially detailed the full scale of the proposed cuts so far.
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