Air India Denies Reports of Halting All International Flights Amid Fuel Cost Surge

Air India on Tuesday dismissed reports claiming that the airline had cancelled all international flights until July due to fuel shortages, calling the speculation completely “false and baseless.”

In a post on X, Air India Newsroom said, “Malicious and fabricated claims circulating on certain platforms alleging that Air India has cancelled all international flights are completely false and baseless.”

The clarification came after reports linked the airline’s recent international route reductions to a wider operational crisis triggered by soaring jet fuel prices and geopolitical disruptions.

However, according to a report by The Economic Times, Air India has implemented temporary reductions across parts of its international network for three months starting June as rising fuel costs and longer flying times impact profitability on several routes.

The report further stated that the airline has suspended some Delhi flights to destinations including Chicago, Newark, Singapore and Shanghai as part of these temporary adjustments.

The development also comes after Prime Minister Narendra Modi on Sunday urged India’s 1.4 billion people to reduce spending on fuel, fertilizer, and travel, a message that underscored the severity of the economic stress triggered by the war in Iran.

Why is Air India Under Pressure?

Global jet fuel prices have surged sharply due to the ongoing conflict in West Asia and tensions around the Strait of Hormuz. According to The Economic Times report, average global jet fuel prices rose to $162.89 per barrel for the week ending May 8, 2026, compared to $99.40 per barrel at the end of February.

Fuel remains one of the largest expenses for airlines, accounting for nearly 40% of total operating costs. The sharp rise in prices is directly impacting airline profitability and forcing carriers to either raise ticket prices or cut services.

Pressure on Air India has also intensified after the closure of Pakistani airspace forced several westbound flights to take longer routes, significantly increasing fuel burn and crew costs.

The report noted that flights to Europe and North America are now operating on extended flight paths, with some North America-bound services making technical stops at Vienna or Stockholm, adding further operational expenses.

More Cuts in Pipeline?

Air India’s board met on Thursday, May 7, to review the airline’s financial performance, cost management measures, and the succession plan for its next chief executive officer. The meeting was chaired by Tata Sons Chairman N Chandrasekaran and comes at a time when the Tata group-owned carrier is facing higher fuel costs and operational disruptions due to the West Asia conflict, according to Business Standard.

The board discussed steps to improve profitability amid sharply higher aviation turbine fuel (ATF) prices, longer international routes, and continued closure of Pakistan airspace for Indian carriers.

Last week, outgoing Air India chief executive officer Campbell Wilson told employees that the airline would continue trimming international services because rising fuel prices and airspace restrictions had made some routes unprofitable.

West Asia Crisis Hits Aviation

The aviation sector continues to face severe pressure due to rising fuel costs and geopolitical disruptions linked to the West Asia conflict. The crisis, now in its third month, has pushed global crude oil prices above $125 per barrel, adding to already elevated aviation turbine fuel (ATF) costs.

The Federation of Indian Airlines (FIA) has urged the government for immediate intervention, warning that the surge in fuel prices and disruptions from the Iran conflict have placed the industry in a “dire condition.” The body said rising crude prices and airspace constraints are forcing airlines into heavy operational losses and capacity cuts.

The airlines have reduced 1,034 weekly international flights in May compared to last year, a decline of nearly 25%, based on Cirium data. Air India Express has cut international operations from 959 to 451 weekly flights, a 53% drop, while Air India has reduced 288 weekly departures. Airlines also reportedly slashed nearly 100 flights to North America and Europe due to higher fuel costs and longer flying routes.

Air India is also projected to record losses exceeding ₹22,000 crore in FY26, significantly higher than the ₹10,859 crore consolidated loss in FY25, according to reports. IndiGo’s net profit fell 77.6% year-on-year (YoY) to ₹549 crore in Q3 FY26, reflecting broader pressure on the aviation sector amid rising fuel costs and operational disruptions.