Air India CEO Campbell Wilson on Sunday flagged the impact of the ongoing war in the Middle East and warned of possible reduction in flights amid high fuel prices.
In an internal email to employees, Wilson said that the impact on Air India Group is significant, given the usual scale of our operations, even as some of their competitors in the Gulf are more affected than them.
"The financial impact of this crisis is yet to be fully felt, as although the spot price of jetfuel has more than doubled, most of the impact will only hit us from next month."
Stating that there will be pockets of new demand, Wilson noted that airlines in some parts of the world are reducing some flights due to high fuel prices, and depending on how fuel costs, airfares and customer demand moves, they may also have to adjust.
"In the three weeks since the conflict started, we have had to cancel around 2,500 flights to the region. As of today, we can operate only around 30% of our normal Middle East schedule because airports and/or airspace are closed, or are assessed to be beyond our safety thresholds," the CEO said.
ALSO READ: IndiGo, Air India, SpiceJet Oppose Govt Order For 60% Free Seat Selection, Warn Of Fare Hikes
He stated that other flights, to the UK, Europe and North America, are being rerouted even further from the already-longer flightpaths we've been using since the Pahalgam event last year, consuming more fuel and adding more time
Flagging that they have already imposed a fuel surcharge on new tickets to help mitigate the imminent cost increase, Campbell Wilson said, "Not every customer is willing to pay higher airfares, so there is a limit to how high they can price before demand drops. Additionally, given economic uncertainties, it is not certain that customers or companies will be as willing to travel as they were prior to the conflict, and may choose to stay put for a while."
ALSO READ: Fuel Spikes And Dubai Delays: India's Airlines Are Pleading For A Government Lifeline
Air India and Air India Express imposed fuel surcharge of Rs 399 on each domestic flight ticket from March 12 and also hike the charge for international bookings due to rise in jet fuel prices.
IndiGo has imposed a fuel surcharge on flight tickets, starting March 14, 2026.
The airline has imposed a Rs 425 levy for domestic travel, Rs 900 for travel to the Middle East, South East Asia and China will attract a Rs 1,800 levy and so will Africa and West Asia, and Rs 2,300 for travel to Europe.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
