Air India suspends dozens of international flights amid Middle East crisis fuel costs

Air India is suspending or reducing frequency on 29 international routes through August, citing soaring jet fuel prices driven by the ongoing Middle East conflict.

The carrier has cut flights to North America, Europe, Southeast Asia, and other regions, with some routes temporarily halted entirely. The move reflects how regional instability is disrupting global aviation and raising operating costs for airlines worldwide.

  • Jet fuel typically accounts for 20–35% of an airline's total operating costs, making fuel price spikes an existential threat to profitability.
  • The Strait of Hormuz, through which roughly 20% of global oil passes, is located in the Middle East and is highly sensitive to regional conflict.
  • Air India operates one of Asia's largest international networks, making it particularly exposed to fuel cost volatility across multiple continents.

US-Iran Ceasefire War

The United States launched military strikes against Iran on June 26, 2026, in response to a drone attack on a commercial cargo ship in the Strait of Hormuz, calling it a "foolish violation" of the 60-day ceasefire agreement signed just days earlier[2][4][14].

US-Iran Ceasefire War— full background & timeline
Air India suspends dozens of international flights amid Middle East crisis fuel costs | Implica