Air India likely to cut 100 flights as fuel costs surge, affects Australia, Europe, North America routes

In a significant move by Air India, the airline is  likely to cut around 100 flights a day citing the rise of Aviation Turbine Fuel (ATF) prices that has made the airline several routes costly to manage, as per reports. This decision will affect both domestic and international services of countries like Australia, Europe, and North America, as per reports. 

The Tata Group owned airline currently operates around 1,100 daily flights with nearly 10% flights are going to be reduced on a daily basis. 

This will affect both domestic and international flights. Following this, long routes such as Europe, North America, Australia and Singapore are likely to have reduced operations as fuel consumption is high and margins are less in these countries' routes, noted the reports.

This decision was taken after the jet fuel prices showed a global surge. The data shows that global jet fuel prices have jumped nearly 80%, climbing to $179.46 per barrel in the end of April from $99.40 at ṭhe end of February, as per the reports.

Reports suggest that airplane fuel is the 40% of an airline's expenses, which makes  profitability low due to price fluctuation currently.

Airlines worldwide reportedly trimmed routes as fuel costs rose and long routes due to geopolitical tensions, particularly in the Middle East .

This decision is also highlighting the ongoing financial challenges at Air India is facing, after the Tata Group acquired it in 2022. Following this rising fuel costs, and competitive pressures are forcing the air line to prioritise cost cutting.