Air India Boeing 787 Dreamliner aircraft with registration letters VT-ANB flies over Tokyo, Japan, April 27, 2025 in this picture obtained from social media.
Koki Takagi | Via Reuters
Singapore Airlines-backed Air India will substantially cut international flights during the peak June to August travel period, as the Iran war-led airspace restrictions and record-high jet fuel prices weigh on the carrier’s operational viability.
The Airline is cutting nearly 140 flights per week, which roughly translates to 27% of its total international flights, according to aviation sector experts.
“These changes are aimed at improving network stability and reducing last-minute inconvenience to passengers,” Air India said in a statement on Wednesday. Air India, co-owned by Tata Group and Singapore Airlines, will fly fewer flights to North America, Europe, Australia, and Asia.
The company is India’ second-largest airline, with 3.6 million seats and a 14% share of the market, according to aviation industry data provider OAG.
Indian carriers have been among the worst affected by the conflict in the Middle East, experts said, as they face closure of airspace over Iran, Iraq, Israel, Kuwait, Qatar, and the UAE. The country was already facing airspace usage curbs in Pakistan, as well as China, highlighted Sanjay Lazar, aviation expert and chief executive at Avialaz Consultants.
“Increased flying hours and added crew costs plus extra fuel used for the trip,” have made the sector totally unviable now, Lazar said, adding that jet fuel in India is up to 40% more expensive than in global hubs, due to local taxes.
Last month, the Federation of Indian Airlines had warned that carriers in the country were “under extreme stress and on the verge of closing down or stopping operations,” as per local media reports.
To offset the impact of falling currency and rising jet fuel costs, Indian carriers will need to raise prices “somewhere in the zone of 15%,” said Ansuman Deb, research analyst at ICICI Securities, told CNBC’s “Inside India.“
On Thursday, the Indian rupee, which has been among the worst-performing currencies in Asia so far this year, fell to an all-time low of 95.95 per dollar, LSEG data showed.
Indian Prime Minister Narendra Modi on Sunday had appeal to the country’s citizens to avoid international travel, as the country’s swelling import bill, pressures the rupee.