Air India cuts international flights amid skyrocketing jet fuel prices
What's the story
Air India, the Tata-owned airline, has announced major cuts in its international network for three months starting June. The decision comes as a response to skyrocketing jet fuel prices and airspace restrictions that are driving up operating costs. The airline has completely suspended flights from Delhi to key destinations such as Chicago, Newark, Singapore, and Shanghai.
Route adjustments
Major reductions in international flight services
Along with the suspension of flights, Air India has also reduced the frequency of its services to several major international cities. These include San Francisco, Paris, and Toronto. In total, the airline has cut around 100 daily flights from its network. The move comes as global jet fuel prices have skyrocketed amid ongoing conflict in West Asia and tensions around the Strait of Hormuz.
Cost concerns
Surge in jet fuel prices
Fuel is one of the biggest expenses for airlines, accounting for almost 40% of total operating costs. The recent surge in global average jet fuel prices to $162.89 per barrel for the week ending May 8, from $99.40 per barrel at end-February, has a direct impact on airline profitability. Higher fuel prices often force the carriers to either increase ticket prices or reduce flights due to financial constraints.
Operational hurdles
Closure of Pakistani airspace adds to challenges
The closure of Pakistani airspace has added to Air India's woes, forcing many of its Europe- and North America-bound flights to take longer routes. This has increased the fuel consumption, crew costs, and travel time. Some North America-bound flights are now making technical stops at cities such as Vienna or Stockholm, further adding to operational costs for the airline.
Industry appeal
Federation of Indian Airlines warns of service suspensions
The Federation of Indian Airlines, which represents Air India, IndiGo and SpiceJet, has warned about possible service suspensions unless the Indian government intervenes to ease cost pressures. While India rolled back a domestic aviation fuel price hike in April, international operations have not received any relief. Jet fuel prices in Delhi are now nearly double March levels.