Rising fuel prices and higher travel costs are forcing airline operators to take unprecedented steps, even if it means a dent to their business.
One such decision has been taken by the Tata Group-owned Air India, which will reportedly cut about 100 flights a day starting June.
The company operates around 1,100 flights daily on domestic and international routes. Both domestic and international flights will be affected due to the decision.
However, flights on international routes such as Europe, North America, and Australia are expected to be impacted the most.
Flight operators around the world are facing elevated jet fuel prices, leading to reduced margins and losses on some routes.
Air India’s decision has come amid the latest hike in the prices of aviation turbine fuel by over 5 percent. This is the second consecutive month that jet fuel prices have been hiked.
In Delhi, the prices have been raised by $76.55 per kilolitre to $1,511.86 per kilolitre.
However, domestic airline companies have been shielded from the latest increase in prices.
Last month, jet fuel prices were more than doubled, but domestic airlines were partially shielded by the government from the steep hike.
Only 25 percent of the total price hike was passed on to Indian flight operators, while international carriers had to bear the full burden.
This was part of various steps taken by the government to minimise the impact of the fuel crisis on the common people.
Air India’s decision to cut flights has come days after a letter written by the Federation of Indian Airlines to the Ministry of Civil Aviation, flagging the operational challenges faced by airlines due to unprecedented fuel costs.
While seeking “urgent support” from the government on ATF pricing, the federation warned that the airline industry in India was under extreme stress and “on the verge of closing down or stopping its operations.”
While IndiGo is the biggest airline company in the country, Air India is the most affected due to the price hikes on international routes.
