Air India is set to reduce its flight schedule by approximately 100 services per day starting June, as surging aviation turbine fuel prices place the airline under severe financial strain. The cuts represent nearly 10% of its daily schedule and will most affect services to Europe, North America, Australia and Singapore.
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. Oil marketing companies are due to revise jet fuel prices imminently, a move the industry fears could deepen the crisis further.
The Federation of Indian Airlines, representing major carriers including Air India, IndiGo and SpiceJet, has written to the Ministry of Civil Aviation seeking urgent government intervention on aviation turbine fuel pricing, warning that the sector is under extreme stress amid the ongoing West Asia crisis. While the government rolled back a steep domestic jet fuel price hike in early April, no relief was extended for international routes.
The proposed capacity cuts could affect airfares and seat availability during the peak travel season. A reduction of over 100 daily flights would tighten supply on affected routes, potentially pushing ticket prices higher for passengers. Industry observers said the move could also signal a broader trend across the Indian aviation sector, with several carriers closely monitoring fuel costs and aircraft utilisation patterns. A final decision is expected at an upcoming board meeting slated for early May.
Source: Economic Times
