Air India has announced a reduction in the number of flights on select domestic routes between June and August. This decision comes as the airline, facing financial challenges, aims to lower costs amidst escalating fuel prices linked to the Middle East conflict. The airline, owned by the Tata Group, had previously scaled back certain international services.
The move involves a temporary rationalization of operations on specific domestic routes during the mentioned period, with a decrease in frequencies on those routes. Air India is expected to eliminate approximately 20% of its domestic flights to reduce fuel consumption, which constitutes about 40% of its operational expenses.
Due to a significant increase in jet fuel costs, from around Rs 80,000 per kilolitre before the Iran war to over Rs 1 lakh, operating flights on certain routes has become financially unsustainable for Air India. Fluctuations in the price of aviation turbine fuel, influenced by varying state VAT rates, further compound the airline’s challenges.
The impact of reduced international operations, a consequence of the Iran conflict, has also led to decreased demand for domestic connecting flights to major hubs like Delhi and Mumbai. This decline in demand is cited as another reason for the airline’s decision to cancel flights. Air India presently operates approximately 4,400 weekly flights, encompassing both domestic and international services.
