New Delhi: Air India is planning to scale back its international flight operations until July, as operating costs rise sharply due to higher aviation fuel prices and airspace-related constraints.
Crude oil prices have climbed amid war-related tensions in West Asia, pushing up aviation turbine fuel costs. At the same time, airspace restrictions are forcing aircraft to take longer routes than usual, adding to overall expenses.
Typically, fuel accounts for around 30% to 40% of an airline’s total costs, but this has now risen to about 60%, according to the report. In this backdrop, the Federation of Indian Airlines has recently written to the Union Civil Aviation Ministry seeking support.
Air India CEO Campbell Wilson, in a circular to employees, said the airline has little choice but to reduce services given the severe challenges currently faced.
Separately, the Air India group is estimated to post a loss of around Rs 22,000 crore for the financial year ended March 31.
