A sharp rise in aviation fuel prices has forced Air India to rethink its international operations.
The airline has decided to permanently stop flights on several global routes and reduce overall services as operating costs continue to rise faster than revenue.
The company says many long-distance routes have become financially unviable, leading to major schedule changes starting June 2026.
Rising Fuel Costs Put Pressure on Airlines
The main reason behind this decision is the steep increase in jet fuel prices worldwide. In just a few months, prices have jumped from around $99.40 per barrel in February 2026 to nearly $162.89 per barrel by early May.
Since fuel makes up almost 40% of an airline’s total expenses, this sudden increase has severely impacted profitability. Even during peak travel demand, operating many routes has become too expensive.
Major International Routes Suspended
As part of the cost-cutting move, Air India has reduced around 100 flights per day for the next three months starting June 2026.
Flights from the Delhi hub have been hit the hardest. Services to major cities such as Chicago, Newark, Singapore, and Shanghai have been fully suspended. Frequencies to destinations like San Francisco, Paris, and Toronto have also been reduced.
Additional Challenges Increase Operating Costs
Apart from fuel prices, geopolitical issues are also adding pressure. The closure of Pakistani airspace has forced longer flight paths to Europe and North America. This results in higher fuel consumption and increased crew costs.
For example, flights to North America now require stopovers in cities like Vienna or Stockholm, further raising expenses. The airline is already dealing with heavy financial losses,
and further reductions in services may happen if costs remain high.
