Air India Reduces Daily Flights Amid Rising Fuel Costs
Air India to cut 100 flights daily as fuel costs bite; Big reductions on Australia, Europe, North America routes
The Economic TimesImage: The Economic Times
Air India is set to cut approximately 100 flights daily due to soaring jet fuel prices, impacting both domestic and international routes, particularly to Europe, North America, and Australia. The airline's operational costs have surged, prompting warnings from industry representatives about potential service suspensions without government intervention.
- 01Air India will reduce about 100 flights daily due to rising fuel costs.
- 02The airline operates around 1,100 flights daily, with significant cuts on international routes.
- 03Jet fuel prices have doubled since March, impacting profitability.
- 04The airline has accumulated losses exceeding βΉ20,000 crore (roughly $2.4 billion USD).
- 05Government intervention is sought to alleviate the financial burden on airlines.
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Air India, facing soaring jet fuel prices, plans to cut around 100 flights daily, affecting both domestic and international routes. The airline operates approximately 1,100 flights daily, with the most significant reductions occurring on flights to Europe, North America, and Australia. The rising cost of jet fuel, which has doubled since March, now accounts for up to 40% of operational costs, severely impacting profitability. The Federation of Indian Airlines (FIA), representing major carriers, has warned that without government intervention, further service suspensions may occur. Air India's operational challenges are compounded by the closure of Pakistani airspace, necessitating longer routes for flights to North America, which increases fuel consumption and costs. The airline has reported losses exceeding βΉ20,000 crore (roughly $2.4 billion USD), putting pressure on its owner, Tata Sons, and its strategic partner, Singapore Airlines, to implement cost-cutting measures.
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The reduction in flights will likely lead to fewer travel options for passengers and could increase ticket prices due to reduced capacity.
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