Air India, which is backed by Singapore Airlines and co-owned by Tata Group, has announced a significant reduction in its international flight operations, cancelling nearly 140 flights per week during the peak June to August travel period. This cut represents approximately 27% of the airline's total international flights, according to aviation sector experts [1]. The decision comes as a direct result of airspace restrictions caused by the ongoing Iran war and record-high jet fuel prices, which have severely impacted the carrier's operational viability [1].
The airline stated that these changes are intended to improve network stability and minimize last-minute inconvenience for passengers. The reduction will affect routes to North America, Europe, Australia, and Asia [1]. Air India is currently India's second-largest airline, holding a 14% market share with 3.6 million seats, as reported by OAG [1].
Indian carriers, including Air India, have been particularly hard hit by the closure of airspace over Iran, Iraq, Israel, Kuwait, Qatar, and the UAE, in addition to existing restrictions in Pakistan and China. Sanjay Lazar, CEO of Avialaz Consultants, noted that increased flying hours, higher crew costs, and extra fuel consumption have rendered the sector "totally unviable" at present. Jet fuel prices in India are up to 40% higher than in global hubs due to local taxes [1].
The Federation of Indian Airlines recently warned that Indian carriers are "under extreme stress and on the verge of closing down or stopping operations," according to local media reports. To counteract the effects of a depreciating rupee and rising jet fuel costs, fares may need to increase by around 15%, according to Ansuman Deb, a research analyst at ICICI Securities [1]. On Thursday, the Indian rupee fell to an all-time low of 95.95 per dollar, further exacerbating the financial strain on airlines. In response to the economic pressures, Prime Minister Narendra Modi has urged citizens to avoid international travel to help reduce the country's import bill and support the rupee [1].
CONCLUSION
Air India's decision to cancel 27% of its international flights highlights the severe operational and financial pressures facing Indian airlines due to the Iran war, high jet fuel prices, and a weakening rupee. With industry experts warning of potential airline closures and the need for significant fare hikes, the market outlook for Indian aviation remains highly challenging.