Mumbai: The brunt of rising aviation turbine fuel is hitting the travellers in yet another way as Air India will be further scaling back its international and domestic operations through June and July. The airline had reduced a number of international routes in April and May after the jet fuel prices hiked a whopping 115% in April.
Massive fuel price rise rendered many routes non-profitable
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According to sources, Air India's outgoing chief executive officer Campbell Wilson told the carrier's employees in an internal communication that the airline has been forced to trim schedules as a massive rise in jet fuel prices has rendered a growing number of routes non-profitable. Describing the current operating environment as "extremely challenging," he noted that while the airline had already reduced certain overseas operations in April and May.
Wilson also highlighted that the domestic operations have also been impacted but on a lower scale. “The profitability of domestic flights has also been significantly affected, but to a lower degree thanks to the government's limitation of the domestic fuel price rise to 25%,” he said. He also noted that the airline has increased airfares and imposed fuel surcharges but there wasn't much room available to keep attracting the customers.
Airline increased airfares
Aviation analysts believe that the decision is driven by a triple whammy of external factors that have pushed Air India’s operational costs to unsustainable levels. This includes exorbitant ATF prices, rerouting and additional fuel burn due to the West Asia conflict and unavailability of Pakistani airspace as well as currency depreciation.
Census 2027 Begins In Thane With Self-Enumeration Facility For Citizens; Online Submission From May 1-15The cuts come at a sensitive time for the Tata-owned carrier. The Air India Group is estimated to have incurred losses exceeding Rs22,000 crore for the financial year 2026. Wilson, who is set to step down later this year, sought continued solidarity from the staff as the airline navigates this crisis.
Peak summer travel months
For passengers, the trimming of operations during the peak summer travel months of June and July is expected to lead to a further spike in spot fares as capacity tightens across the industry. The service reductions are expected to hit high-traffic international corridors the hardest. Sources indicate that flights to North America, Europe, Australia, and Singapore will see frequency rationalization.
Earlier this week, Air India announced that it will commence operations under the union civil aviation ministry's hub and spoke model. It became the first airline to announce international operations from Varanasi via Delhi as the hub.
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