After reportedly posting a loss of around ₹20,000 crore ($2.4 billion) in FY26, Tata Group-led Air India is planning to curtail operations amid rising jet fuel prices and operational challenges, industry sources told businessline.

According to sources, the airline is evaluating a 15–20 per cent reduction in flight operations, while at the group level, the curtailment may be restricted to 10–15 per cent.

Air India did not respond to queries on the reported review of its flight schedule despite multiple messages and e-mails.

The proposed cut could impact around more than 100 flights out of over 1,100 daily (approximately) flights operated by Air India Group. 

On a standalone basis, Air India currently operates more than 700 flights daily serving multiple domestic and international destinations through its network.  

The proposed move is expected to affect airfares and capacity during the peak travel season.

Sources said international routes are expected to bear the brunt of the cuts as higher operating costs weigh on aircraft utilisation and route economics.

The airline has been reviewing capacity deployment across its network in response to mounting operational pressures, particularly on overseas routes where extended flying times have reduced aircraft productivity and increased crew and fuel expenses.

In terms of sectors, the proposed reduction is expected to be concentrated largely on international services, especially long-haul routes to Europe and North America.

Meanwhile, industry executives said airspace-related diversions and route adjustments have increased flying times on several corridors, affecting fleet utilisation and limiting the number of rotations aircraft can perform within a given schedule cycle.

“Aircraft are spending more time in the air for the same route, which directly affects utilisation and network efficiency,” an industry executive familiar with the developments said.

Besides, elevated aviation turbine fuel prices have added pressure on operating margins. Fuel remains among the largest cost components for airlines, and sustained price increases are prompting carriers to reassess route viability and frequency planning.

Sources indicated that the exercise is being positioned internally as a network optimisation effort rather than a retreat from expansion plans.

The airline is said to be identifying sectors where temporary frequency cuts or schedule adjustments could improve cost efficiency while maintaining connectivity.

However, the final call on the proposal may be taken during an upcoming board meeting slated for the early part of May.

While domestic routes may also witness selective changes, industry sources said the sharper impact is expected on international operations, where cost pressures are more pronounced and turnaround economics have become increasingly challenging.

Additionally, industry observers said the move could signal a broader trend across the aviation sector. Several carriers are monitoring fuel costs and aircraft utilisation patterns closely, and similar capacity adjustments may follow if market conditions remain volatile.

Published on April 22, 2026