Air India is cutting nearly 100 flights as soaring jet fuel costs take a toll on the struggling flag carrier, deepening the fallout on the aviation sector of the US-Israeli war on Iran.
CEO Campbell Wilson said the airline had already reduced overseas operations for May as increasing fuel prices and airspace restrictions in India's neighbourhood made overseas routes too expensive. Additional cuts are being made for June and July as the closure of the Strait of Hormuz continues to disrupt fuel supplies.
The Federation of Indian Airlines warned that the industry is under extreme financial strain and on the verge of closure. India imports nearly 88 per cent of its crude oil, making it vulnerable to global price shocks.
Air India is reducing flights to Europe, North America, Australia and Singapore in June. Jet fuel accounts for nearly 40 per cent of an airline's operating costs.
Mr Wilson expressed regret for the disruption and hoped the Middle East situation settles and the Strait of Hormuz opens soon. The airline is forecast to take a $600m hit from Pakistan's airspace ban on Indian flights.
