Air India Scales Back International Network
Air India has reduced around 100 international flights per day as soaring aviation fuel prices and ongoing disruption linked to the Middle East crisis continue to impact airline operations.
According to reports, the Indian flag carrier has already reduced frequencies on routes from New Delhi to San Francisco, Paris and Toronto.
Beginning in June, the airline will also suspend flights to Chicago, Newark, Shanghai and Singapore for a period of three months.
Fuel Costs Trigger Route Reductions
The airline is continuing to review its international network as rising global fuel prices make several long-haul routes financially unsustainable.
Jet fuel prices have reportedly climbed to around $162.8 per barrel, sharply increasing operational costs for airlines worldwide.
Previously, fuel expenses accounted for roughly 40% of Air India’s operating budget when prices were closer to $99 per barrel.
Pakistan Airspace Closure Adds Pressure
Air India has also faced additional operational challenges after Pakistan closed its airspace to Indian aircraft on April 24, 2025.
The restriction has forced the airline to reroute flights to Europe and North America along significantly longer paths, increasing fuel consumption and extending flight times on major international services.
As a result, the carrier has reportedly suffered losses of around 200 billion rupees, equivalent to more than $2 billion.
Domestic Fuel Support Does Not Cover International Flights
Earlier this year, the Indian government introduced measures aimed at stabilizing fuel prices for domestic aviation, but those protections did not apply to international operations.
The Federation of Indian Airlines has warned that further increases in fuel prices could make overseas routes unprofitable for carriers across the country.
India Warns Of Broader Economic Impact
The aviation industry’s difficulties come amid wider economic concerns linked to the ongoing Middle East crisis.
On May 10, Indian Prime Minister Narendra Modi urged citizens to reduce fuel consumption, fertilizer use and unnecessary travel as the country faces mounting economic pressure from rising global energy costs.
Airlines across Asia and Europe continue to monitor fuel markets closely as geopolitical tensions reshape international aviation economics and route planning.
