Air India has suspended and reduced flights on several international routes as soaring jet fuel prices and airspace restrictions continue to increase operating costs for airlines.
The Tata-owned for three months starting June, reported The Economic Times.
The report said has fully suspended flights from Delhi to destinations including Chicago, Newark, Singapore, and Shanghai.
The airline has also reduced flight frequencies to several major international cities such as San Francisco, Paris, and Toronto.
Overall, around 100 daily flights have reportedly been cut from the network.
The move comes at a time when due to the ongoing conflict in West Asia and tensions around the Strait of Hormuz.
According to the report, global average jet fuel prices rose to $162.89 per barrel for the week ending May 8, 2026, compared to $99.40 per barrel at the end of February.
Fuel is one of the biggest expenses for airlines and can account for nearly 40% of total operating costs.
Higher fuel prices directly affect airline profitability and often
The report said Air India is facing greater pressure than rival IndiGo because the closure of Pakistani airspace has forced many of its Europe- and North America-bound flights to take longer routes.
This has increased fuel consumption, crew costs, and travel time.
Some flights to North America are now making technical stops at cities such as Vienna or Stockholm, adding further operational costs.
Last week, Air India CEO Campbell Wilson reportedly told employees that the airline would continue reducing international services because higher fuel prices and airspace restrictions had made several routes unprofitable.
According to the report, people aware of the matter said further cuts may happen if fuel prices remain elevated.
A senior airline official quoted in the report said, “We are not recovering even the operating cost on most flights. A sustained increase will force us to cut more.”
The report said the Federation of Indian Airlines, which represents airlines including Air India and IndiGo, had recently warned about possible service suspensions unless the government steps in to ease cost pressures.
While India rolled back a domestic aviation fuel price hike in April, airlines have reportedly not received relief for international operations.
Jet fuel prices in Delhi are now said to be nearly double March levels.
The report also linked the situation to Prime Minister Narendra Modi’s recent remarks urging Indians to reduce fuel usage and avoid unnecessary travel amid the global energy shock caused by the Iran conflict.
The Prime Minister had also appealed to citizens to conserve foreign exchange as global prices remain elevated.