Air India cuts international capacity amid soaring fuel costs

Air India is the latest among a growing number of airlines cutting back their operations amid high fuel prices. 

Air India is to reduce its international operations through August, amid operational challenges such as high jet fuel prices and airspace restrictions.

The network “rationalisation” will impact routes across its network, from North America to North and Southeast Asia.

Air India will suspend operations from Delhi to Newark, Chicago, Male and Shanghai, as well as from Mumbai to New York JFK and Dhaka between June and August. It will also cut its frequencies on several routes from Delhi, Mumbai and Chennai.

“These changes are aimed at improving network stability and reducing last-minute inconvenience to passengers,” the Star Alliance carrier states.

It adds: “Despite the challenges and beyond these adjustments, Air India will continue to operate more than 1200 international flights every month, retaining a robust international network that spans five continents.”

Air India is part of a growing number of carriers to significantly cut capacity in response to the high fuel prices brought about by the ongoing Iran conflict.

For Air India, however, fuel price volatility is the latest in a string of headwinds it has confronted in recent years. Airspace restrictions – brought about by the India-Pakistan conflict in 2025 – have forced it to reroute its west-bound operations, while supply chain challenges have delayed new aircraft deliveries and ongoing cabin upgrade works.

The airline, which was privatised under current owners Tata Group in 2022, has had to grapple with increased scrutiny following a fatal accident in 2025 involving a Boeing 787-8 that crashed shortly after taking off in Ahmedabad.

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