Air India’s plan to trim international flights through July has triggered a political attack from the Congress, which accused the Centre of allowing rising fuel costs and airspace disruption to weaken one of the country’s largest carriers.The criticism followed internal communication from Air India Chief Executive Officer and Managing Director Campbell Wilson, who told employees that a sharp rise in aviation turbine fuel prices, longer routings and airspace restrictions had made several overseas services unprofitable. The airline had already reduced some flying in April and May and is now preparing further schedule cuts in June and July.
Congress, reacting to the development on X on Sunday, alleged “gross mismanagement” and said the government was failing to protect the country’s long-term economic interests. The party said it was alarming that the country’s second-biggest carrier could be forced to scale back global operations for months, arguing that policy attention had been diverted towards electoral calculations rather than economic resilience.
Air India’s immediate difficulty stems from a combination of expensive fuel, West Asia tensions and airspace closures that have forced aircraft to fly longer routes to several international destinations. Longer sectors increase fuel burn, crew costs, aircraft utilisation pressure and turnaround complexity, particularly on long-haul routes to Europe, North America and Australia.
Wilson’s message to staff described the situation as “extremely challenging” and said the airline had little option but to trim schedules. He also acknowledged disruption to passengers and crew rosters, while expressing hope that conditions in West Asia and key maritime routes would normalise enough for operations to return to a steadier pattern.
The pressure is not limited to Air India. Carriers operating from the country have warned the Civil Aviation Ministry that aviation turbine fuel costs are placing the sector under severe stress. Fuel, which normally accounts for about 30 to 40 per cent of airline operating costs, has climbed to roughly 55 to 60 per cent for some operators as global crude prices, exchange-rate pressures and restricted airspace feed into operating expenses.
Air India has raised fares and introduced fuel surcharges to soften the impact, but the airline’s management has warned that there are limits to how much of the burden can be passed on to passengers. Higher fares risk dampening demand, particularly on price-sensitive routes and during periods when discretionary travel can be delayed.
Domestic services have also been affected, though less sharply than overseas operations. Government limits on domestic fuel price increases have partly cushioned local routes, while international services remain more exposed to global fuel benchmarks and longer flight paths. Foreign airlines have also faced higher aviation turbine fuel prices after state-run refiners raised rates from May 1.
The latest strain comes at a delicate point in Air India’s turnaround under the Tata Group. The carrier is still integrating Vistara, reshaping its network, refurbishing cabins, expanding long-haul ambitions and attempting to rebuild customer confidence after years of underinvestment before privatisation. Its transformation plan depends heavily on international growth, premium traffic and improved aircraft utilisation, making any prolonged long-haul disruption commercially significant.
Air India Group is estimated to have recorded losses of more than ₹22,000 crore in the financial year ended March 31, 2026, underlining the scale of the challenge facing its restructuring effort. The airline has been investing in fleet renewal, network rationalisation and service upgrades, but volatile fuel prices and conflict-linked routing constraints have added a new layer of financial pressure.
The Congress attack gives the aviation crisis a sharper political edge. The opposition’s argument is that fuel pricing, taxation and crisis management are policy issues, not merely corporate problems for airlines to absorb. Its criticism seeks to frame Air India’s cutbacks as part of a wider failure to shield strategically important sectors from external shocks.
Government managers, however, face a difficult balance. Direct fuel relief would help airlines but could affect public finances and energy pricing discipline. Allowing fares to rise freely could support airline balance sheets but burden passengers and businesses. Further intervention in aviation turbine fuel pricing would also involve coordination across refiners, tax authorities and ministries.