Air India route cuts likely as airspace constraints reduce profitability, CEO Campbell Wilson says

Air India is reviewing its network and may cut flight frequencies or pause some routes. CEO and MD Campbell Wilson said several services have turned less profitable or loss-making. The pressure is linked to airspace constraints and higher operating costs. The airline is also carrying out a wide transformation plan while managing these near-term disruptions.

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At a staff town hall meeting on Friday, Air India listed steps to save money. The airline deferred payment of annual increments. Employees were also asked to reduce discretionary spending. Management positioned the actions as part of a wider effort to protect finances while costs stay elevated on some operations.

Air India routes face review amid airspace constraints

Wilson said some routes no longer deliver the returns they once did because of restricted airspace. Wilson indicated the airline may adjust its network quickly when economics change. "Sometimes, itll be pulling back frequency, sometimes it might be suspending routes entirely. We will go back when circumstances change, but we need to be agile to change our network,\" Wilson told staff, a source said.

The airline’s scale remains large despite the proposed changes. Air India has around 190 aircraft in its fleet. It operates about 8,000 flights each week. In the financial year ended March 31, 2026, it carried nearly 62 million people across its network.

Air India cost pressures rise with jet fuel prices

Air India’s costs have risen after the closure of Pakistan airspace. The West Asia conflict has also lifted jet fuel prices. These factors have increased expenses for the loss-making airline. Longer routes can raise fuel burn and flying time, which can weaken margins on international services.

Wilson addressed staff on May 1 about the same headwinds. Wilson said conditions remained hard for the airline. \"... massive rise in jet fuel prices which, together with airspace closures and longer flying routes, has caused many of our international flights to become unprofitable to operate,\" Wilson said in a message.

Air India schedules trimmed for April to July period

International schedule reductions began in April and continued through May, Wilson said earlier. Wilson also stated the airline had to cut more flying. The message pointed to further trimming for June and July. Air India said it would keep working on actions that lift revenue and reduce costs.

Wilson described a balance between earning more and spending less. \"We will continue to do the things that improve revenues and continue to do things to improve costs,\" Wilson said. The airline’s plan includes scaling back or suspending routes that are now loss-making. Air India indicated it may restore services when conditions improve.

With inputs from PTI