Air India will reduce around 100 flights per day across its network between May and July 2026, sparking concern among cabin crew about forced unpaid leave, reduced rosters, and possible layoffs if the cuts extend further. The Tata Group-owned carrier has cited surging aviation turbine fuel (ATF) prices and West Asia airspace closures as the trigger, with Europe, North America, Australia, and Singapore routes facing the steepest reductions.
The cuts represent a 15-20% capacity reduction across the Air India Group network. CEO and Managing Director Campbell Wilson has warned of further schedule trims in June and July. Air India is expected to post losses of around ₹20,000 crore in FY26, and ATF now contributes up to 60% of the airline’s operating expenses, a level the Federation of Indian Airlines has called unsustainable.
For cabin crew, the workforce implications are immediate. Industry insiders have flagged that if reductions continue past July, Air India may formally roll out structured periods of leave without pay to manage surplus manning levels. Indian airlines have used unpaid leave as a buffer before formal layoffs in past downturns. Whether the Tata-owned carrier follows that playbook is unclear, but discussions of cabin crew layoffs are already circulating within crew networks and union channels.
“Many flights are currently operating below break-even levels,” a senior Air India official said, as quoted by The Economic Times. The official added that sustained fuel increases could force additional capacity reductions if conditions don’t improve.
The closure of Pakistani airspace has compounded the airline’s challenges, forcing flights to Europe and North America to take longer detours through cities such as Vienna or Stockholm. The longer routes drive up fuel burn, crew duty time, and aircraft turnaround cycles, all of which push international operations further into the red. The Federation of Indian Airlines has urged the government to intervene in jet fuel pricing and excise duties.
The financial uncertainty layers onto a year already marked by policy friction. Air India’s “fit to fly” rule, effective May 1, 2026, ties cabin crew BMI thresholds to flight eligibility and pay. Crew members with a BMI above 30 face derostering and reduced compensation. Labour rights groups have argued the policy may run afoul of Indian employment law by linking remuneration to physical measurements rather than performance or safety outcomes.
The airline’s board is expected to take a final decision on extended capacity cuts in the coming weeks.
