Air India to slash 100 daily flights as rising fuel costs bite; major cuts on Australia, Europe and North America routes

Air India will cut around 100 flights a day, citing a sharp rise in aviation turbine fuel (ATF) prices that has made several routes financially unviable. The move, announced Friday, affects both domestic and international services and marks one of the airline's most significant capacity reductions in recent years.

The Tata Group-owned carrier currently operates roughly 1,100 daily flights, so the cuts amount to nearly 10% of its schedule. The steepest reductions are expected on long-haul international routes to Europe, North America, Australia, and Singapore, where fuel consumption is highest and margins are under pressure.

Key corridors linking Delhi and Mumbai with London, Paris, New York, Toronto, San Francisco, Sydney and Melbourne are likely to see fewer flights. Even strong demand markets such as Singapore may face reductions, signalling a shift from network expansion to route-level profitability.

The decision comes amid a dramatic surge in global jet fuel prices. Industry data show average ATF prices have jumped nearly 80% in recent weeks, significantly raising operating costs. Fuel accounts for up to 40% of an airline’s expenses, making profitability highly sensitive to price fluctuations.

Compounding the problem are geopolitical disruptions. According to industry tracker Whalesbook, airspace restrictions have forced airlines to take longer, fuel-intensive routes, particularly on flights to Europe and North America. These detours can add hours to flight times and further strain already thin margins.

Industry bodies such as the Federation of Indian Airlines (FIA), which represents major carriers including IndiGo, Air India, and SpiceJet, have warned that more service suspensions may follow if the government does not intervene. Airlines have called for relief measures such as reducing excise duty and value-added tax on jet fuel, which remains among the highest globally in India.

While the government rolled back a recent increase in domestic fuel prices, international routes have not seen similar relief, exacerbating cost pressures. Airlines argue that without policy support, sustaining long-haul operations could become increasingly difficult.

The development also highlights the ongoing financial challenges at Air India, which continues to undergo a multi-year turnaround under the Tata Group following its acquisition in 2022. Rising fuel costs, combined with legacy losses and competitive pressures, are forcing the airline to recalibrate its network and prioritise profitable routes.

With fuel prices expected to remain volatile in the near term, industry experts believe airlines may increasingly resort to capacity cuts, fare hikes, and route optimisation to manage costs. For passengers, this could translate into higher ticket prices and reduced flight options on key international sectors in the coming months.

For Indian travellers, the immediate impact will likely be higher airfares, especially on long-haul routes where cuts are concentrated. Reduced frequency also means less flexibility in travel planning and potentially longer layovers.