Air India denies halting international flights till July, trims overseas frequencies amid fuel surge

Air India has reduced frequencies on several international routes for three months as rising fuel costs and geopolitical tensions increase pressure on airline operations globally.

Air India denies halting international flights till July, trims overseas frequencies amid fuel surge

Photo:IANS

Air India has reduced frequencies on several international routes for the next three months as rising jet fuel prices and geopolitical disruptions continue to weigh on airline operations, sources said on Wednesday.

The airline, however, strongly denied reports claiming that it had suspended all international flights till July because of fuel shortages, calling such claims “malicious” and “completely false”.

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The route reductions come at a challenging time for the Tata Group-owned carrier, which has been grappling with higher operating costs, airspace restrictions and broader financial pressure while continuing its long-term restructuring exercise. International operations have become increasingly expensive amid instability in West Asia and a sharp spike in aviation fuel prices.

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In a statement posted on X, Air India clarified that its international services remain operational and that no blanket suspension of overseas flights has been announced.

ANI mentioned sources as saying some international routes from Delhi, including Chicago, Newark, Singapore and Shanghai, are among those seeing reduced frequencies. Services to destinations such as San Francisco, Paris and Toronto have also reportedly been scaled back as part of operational adjustments aimed at containing costs.

Reports suggest that nearly 100 daily flights have been reduced overall.

Air India cites geopolitical tensions and fuel costs

Last week, Air India CEO Campbell Wilson, during a town hall meeting with employees alongside Chief Human Resources Officer Ravindra Kumar GP and CFO Sanjay Sharma, outlined the external pressures facing the aviation sector and their impact on the airline.

According to sources, Wilson referred to the continuing closure of Pakistani airspace, disruptions and airspace closures across West Asia due to geopolitical conflicts, the depreciation of the rupee, and a steep increase in jet fuel prices.

Jet fuel remains one of the largest components of airline operating costs and has become increasingly volatile in recent months.

“We need to focus relentlessly on our costs in these tough times,” Wilson reportedly said during the meeting.

He also urged employees to reduce discretionary spending, renegotiate rates wherever possible and defer non-essential expenditure.

“There must be a laser-sharp focus on eliminating wastage and leakages,” he said, while stressing that customer experience improvements should continue despite tighter cost controls.

Airline continues cost-cutting measures amid financial strain

The airline has been tightening internal controls and reviewing expenditure across departments as part of its broader turnaround strategy.

During the town hall meeting, Wilson reportedly said that more than 1,000 employees had been terminated over the past three years over ethical misconduct and policy violations.

According to reports, the alleged violations included misuse of the Employee Leisure Travel system, allowing excess baggage without proper charges and smuggling items off aircraft.

Air India has also frozen annual salary increments and introduced stricter spending controls as it attempts to manage mounting financial losses.

Sources also said CHRO Ravindra Kumar GP informed employees that the airline would continue with variable pay for the last financial year and proceed with planned promotions.

Reports suggest the broader Air India Group, including Air India Express, may have ended FY26 with losses exceeding Rs 22,000 crore.

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