Air India Weighs Major Flight Reductions Following Reported Rs 20,000 Crore Loss

Industry executives have indicated that this move could tighten capacity and push up fares during the upcoming peak travel season. International services are expected to sustain the deepest cuts, as rising fuel costs, longer flying times, and higher crew expenses have squeezed route profitability and aircraft utilisation on overseas sectors. Consequently, the airline has been reassessing capacity deployment across its network, particularly on long-haul international routes where extended block hours have eroded productivity and weighed heavily on overall operating economics. Routes to Europe and North America are anticipated to form a substantial portion of this recalibration, with sources indicating that the airline is exploring temporary frequency reductions and timetable adjustments to improve cost efficiency without fully exiting key markets.

Internally, this exercise is being presented as a network optimisation initiative rather than a rollback of expansion plans. While domestic operations may see selective changes, the bulk of the impact is expected to fall on international routes where cost pressures are sharper and turnaround economics have become increasingly challenging. A final decision on these proposed cuts is expected to be taken at an upcoming board meeting scheduled for early May. This strategic pivot highlights the intense financial pressure facing the carrier as it attempts to balance its ambitious growth with the harsh realities of global aviation costs and operational sustainability.