Air India seeks fuel levy after Pakistan closed its airspace
Air India wants to introduce a new fuel levy to help cover extra costs after Pakistan closed its airspace to Indian airlines.
Since foreign carriers can still fly through, this move aims to level the playing field.
The levy would apply to aviation fuel bought in India, with Indian airlines getting discounts back, while foreign airlines' payments would help support the rerouted Indian flights.
Detours cost Air India 5,000 cr
Because of longer detours for Europe and North America flights, Air India's estimated annualized financial impact has shot up by about ₹5,000 crore.
On top of that, Gulf airspace restrictions and high fuel prices have pushed Air India Group's losses over ₹6,000 crore in just the first quarter of FY27, almost double last year's number.
It's a tough time for Indian flyers and airlines alike.