Air India to cut nearly 100 daily flights as Brent crude crosses $120 and jet fuel prices spike
Airlines warn rising fuel costs and longer routes due to airspace closures are making operations unviable
Industry body FIA flags “dire” situation, urges government intervention as more flight cuts loom
Oil Above $100 Triggers Aviation Crisis; Air India to Cut 100 Flights
Surging jet fuel prices and longer flight routes squeeze airline margins, forcing capacity cuts and raising fears of wider disruption
Air India
Summary
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Air India is set to slash nearly 100 flights a day across domestic and international routes as surging jet fuel prices put severe pressure on airlines. The global oil market has remained highly volatile since the onset of the US–Iran conflict, with benchmark Brent crude soaring to $125 per barrel — its highest level since 2022.
Indian carriers have been raising concerns over rising crude prices, warning that escalating costs may force them to scale back operations.
The Federation of Indian Airlines (FIA), which represents IndiGo, Air India, and SpiceJet, wrote to the Ministry of Civil Aviation earlier this week, flagging the surge in fuel prices alongside operational challenges such as longer flight routes. The body warned that airlines may be compelled to cut flight operations.
Air India, which operates nearly 1,100 flights daily, is expected to sharply reduce services to Europe, North America, Australia, and Singapore starting June.
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Oil marketing companies are due to revise jet fuel prices on Friday — a move industry participants fear could deepen the ongoing crisis. While New Delhi rolled back a steep domestic jet fuel price hike in early April, no relief was extended for international routes.
Jet fuel prices have doubled since March, and airlines warn that any further increase could render several routes financially unviable, according to an Economic Times report.
Global average jet fuel prices stood at $179.46 per barrel for the week ended April 24, up 80% from $99.40 at the end of February.
“We are not recovering even the operating cost on most flights. A sustained increase will force us to cut more,” the report quoted a senior Air India official as saying.
Air India hit worse
According to the report, Air India has been hit harder than rival IndiGo due to its wider international exposure. The closure of Pakistani airspace has forced flights to Europe and North America to take longer routes, increasing fuel burn and crew costs.
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Several North American flights are now making stopovers in cities such as Vienna or Stockholm, further compounding expenses.
The airline has reportedly accumulated losses exceeding Rs 20,000 crore and is facing mounting pressure to rein in costs and restore financial stability. The FIA has urged the government to step in, warning that the industry is in a “dire” situation and under extreme stress.