The airline, which operates around 1,100 flights daily, will see the steepest cuts on services to Europe, North America, Australia and Singapore scheduled for June.
Oil marketing companies are due to revise jet fuel prices on Friday, a move the industry fears could deepen the crisis further.
On Monday, the Federation of Indian Airlines (FIA), representing IndiGo, Air India and SpiceJet, had warned of service suspensions unless the government steps in to ease the cost burden.
While New Delhi rolled back a steep domestic jet fuel price hike in early April, it has offered no relief on international routes.
Jet fuel at Delhi now costs double its March price, and airlines warn that any further increase will make flights financially unviable.
Global average jet fuel prices stood at $179.46 per barrel for the week ended April 24, up 80% from $99.40 at end-February.With fuel accounting for up to 40% of an airline’s operating costs, even modest price movements can severely dent profitability and push ticket prices higher.
“We are not recovering even the operating cost on most flights. A sustained increase will force us to cut more,” a senior Air India official said.
Air India is bearing a heavier blow than rival IndiGo due to its wider international operations. The closure of Pakistani airspace has forced its Europe and North America-bound flights onto longer routes, sharply increasing fuel consumption and crew costs. Flights to North American cities must now make stops at Vienna or Stockholm, compounding the expense.
The airline has already accumulated losses exceeding ₹20,000 crore, and owner Tata Sons — along with strategic partner Singapore Airlines — faces mounting pressure to rein in costs and restore the carrier to financial health.
