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Fuel Shock Forces Air India to Cut 27% of Summer International Flights

Soaring fuel prices plus blocked airspace are squeezing airline finances worldwide.

Overview

  • Air India, which announced the changes Wednesday, will remove nearly 140 international flights a week from June to August, about 27% of its overseas schedule.
  • The airline is suspending or trimming services to North America, Europe, Australia and Asia, and it is offering rebooking, free date changes or full refunds to affected customers.
  • Singapore Airlines disclosed Air India lost about US$2.8 billion in FY2025/26, and SIA’s accounts reflect roughly S$945 million of related losses from that investment.
  • SIA said Thursday its full‑year net profit fell 57% and warned higher jet fuel costs are still filtering through due to the Iran conflict and the closed Strait of Hormuz.
  • Foreign carriers are adding India flights to capture displaced demand, a shift that could lock in higher fares if fuel prices stay high and airspace reroutes persist.