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Overseas carriers cut India flights on rising fuel costs
Breaking India News Today | In-Depth Reports & Analysis – IndiaNewsWeek > Economy > Overseas Airlines Reduce India Flight Services Amid Soaring Fuel Prices
Economy

Overseas Airlines Reduce India Flight Services Amid Soaring Fuel Prices

Indianewsweek By Indianewsweek May 4, 2026 3 Min Read
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International airlines, including those from Australia and Thailand, are reducing flights to India amid rising jet fuel prices. Qantas, the Australian airline, has announced a temporary suspension of its flights between Sydney and Bengaluru from August to the end of October. Similarly, Thai AirAsia is cutting flights to various Indian cities.

Qantas has indicated that it is taking steps to manage the impact of the ongoing conflict in West Asia, which has driven up fuel costs. The airline is shifting capacity to Europe to meet increased travel demand while reducing its operations to India. Additionally, Qantas has lowered the frequency of flights on domestic and New Zealand routes.

Thai AirAsia plans to suspend its services from Phuket to Chennai and Kochi and has canceled flights to other Indian destinations. Overall, the airline is reducing its capacity by 30%. It noted that the cuts, particularly affecting India, are a response to elevated fuel prices that limit the ability to maintain low fares.

Both domestic and international carriers have implemented or increased fuel surcharges to cope with rising fuel prices. Although fare increases for scheduled domestic flights are capped at 25%, the cost of jet fuel for international flights has doubled compared to levels recorded in March.

The demand for travel remains uncertain, with popular routes to Southeast Asia failing to see a rebound. This trend has already prompted Air India Express to reduce its flights to Thailand in May.

Anil Kalsi, Vice-President of the Travel Agents Federation of India, remarked, “Demand for international leisure travel has slowed down and customers are thinking twice before booking trips.”

In response to the challenges posed by soaring fuel costs, Air India is set to reduce the frequency of flights on certain routes to Europe and North America by 10-12%. Additionally, a reduction is planned for the upcoming Mumbai-Tokyo route scheduled for July.

In an internal email, Air India CEO and Managing Director Campbell Wilson noted that the airline had already cut flights in April and May as rising fuel costs rendered certain operations unprofitable. “The airspace and jet-fuel price situation remain extremely challenging, leaving us with no choice but to further trim schedules for June and July,” Wilson stated.

Published on May 3, 2026.

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