Oil shock: Air India to suspend several international flights for 3 months from June

Air India will suspend and reduce several international flights from June for three months due to soaring jet fuel prices linked to the Middle East crisis. The Tata Group airline is also tightening cost controls, cutting expenses, and enforcing stricter compliance amid mounting financial losses

New Delhi: Air India has decided to suspend several international flights for three months, beginning June, amid surging jet fuel prices due to the Middle East crisis, said reports. Multiple reports said that the reduction in international flights from Delhi include key destinations like Chicago and Newark in the US, Singapore and Shanghai.

Moreover, Air India flights to destinations like San Francisco, Paris, and Toronto have been cut. Overall, the airline has reduced around 100 daily flights, said reports. Air India CEO Campbell Wilson last week said that the airline would continue reducing international services amid higher fuel prices amid geo-political tensions.

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Facing rising financial pressure and operational challenges, Air India has intensified its internal compliance and cost-control measures, with the airline terminating more than 1,000 employees over the last three years for ethical misconduct and policy violations.

The disclosure was made by Wilson during a town hall meeting with employees last week. Wilson reportedly told staff that the airline had taken action against employees involved in multiple violations, including misuse of the Employee Leisure Travel (ELT) system, smuggling items off aircraft and allowing excess baggage without proper charges.

The airline’s stricter enforcement comes at a time when it is battling significant financial stress. The Air India Group, comprising Air India and Air India Express, is projected to have posted losses of more than Rs 22,000 crore in the financial year ended March 2026.

As part of its broader restructuring and turnaround efforts under the Tata Group, the airline has already initiated several cost-saving measures. These include withholding annual salary increments for employees, reducing discretionary spending and cutting non-critical expenditure across departments.

The Tata-Group airline implementing these measures as government data also showed that Air India Express reported a significant jump in losses during the FY25.