SIA-backed Air India cuts international routes as Middle East conflict drives up fuel costs

SINGAPORE: Air India, a carrier backed by Singapore Airlines, will be reducing its international trips by around 27%, or almost 140 flights each week. This is set to take place between June and August, traditionally the peak travel period, and is in large part due to the sharp increase in the cost of jet fuel as a result of the war in the Middle East.

Airlines in India have been the most heavily affected, according to a CNBC report. Local taxes have meant that jet fuel in the country is 40% costlier than in international hubs. 

Additionally, Pakistani airspace is closed to Indian airlines, including Air India and IndiGo, which has meant longer routes for the carriers. Air India has sought a workaround through using routes over China’s Xinjiang region to bypass Pakistan, but permission from China is needed as the routes involve military-controlled airspace. 

With the war in the Middle East, airspace has been closed over Iran, Iraq, Israel, Kuwait, Qatar, and the UAE as well.

Air India, the country’s second-largest airline, said in a statement on Wednesday (May 13), that the reductions to its flights to  North America, Europe, Australia, and Asia “are aimed at improving network stability and reducing last-minute inconvenience to passengers.”

The Federation of Indian Airlines already said in April that airlines are under “extreme stress” and were in danger of closing down.

Air India, which is jointly owned by SIA and the Tata Group, recorded a S$3.56 billion loss in 2025.

While SIA earned S$20.5 billion last year, seeing an operating profit of 39% because of higher demand, its share of Air India’s loss amounted to S$945.2 million.

CNBC reported that year on year, SIA’s net profit dropped 57.4% S$1.18 billion.

Nevertheless, Goh Choon Phong, SIA’s CEO, said on May 15 that the airline will maintain its support for Air India, saying, “It is going to be a long game. There is no shortcut.” 

SIA holds a 25.1% stake in Air India, and said in 2022 that it was investing S$360 million to “fund the growth and operations of the enlarged Air India.” 

Tata Group Chairman N Chandrasekaran said at the time that its goal with the merger was an important part of rebuilding Air India into a “world-class airline.” /TISG

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