Air India to Cut Flights: A key development has taken place in the domestic aviation sector. Air India has reportedly decided to reduce its flight operations due to rising jet fuel (ATF) prices. It seems that there is a plan to cut international flights especially in the months of June and July. Jet fuel prices have also increased significantly in the wake of rising crude oil prices across the world. This has a severe impact on airlines. In these circumstances, with many international routes slipping into losses, the company is said to be left with no option but to curtail services.
According to reports, Air India CEO Campbell Wilson has given internal instructions on the matter. According to him, factors such as increase in jet fuel prices, changes in currency exchange rates and airspace restrictions are having a severe impact on the company’s operations. Tensions in the Middle East, especially tensions between Iran and the United States, and developments in the Strait of Hormuz are affecting oil supply worldwide. Due to this, the fuel prices have increased drastically and are putting an additional burden on the aviation sector.
Air India’s profits were also affected domestically. Although the government has taken steps to control prices, it has become a challenge for companies to cope with rising costs. In this background, the company had to reduce its operations. Further, it seems that Air India has also informed its staff about this decision and asked them to move forward with unity in the interests of the organization. Changes in flight schedules are likely to occur in the coming days.