Air India CEO: Flight Cuts Could Be Reversed if Stability Holds

Air India may restore some of the 340 weekly international flight cuts it imposed during the West Asia conflict if the security situation remains stable, its chief executive told employees Friday.

Campbell Wilson said the abatement of the conflict – which began Feb. 28 when Israel and the US attacked Iran – has opened more airspace and moderated fuel prices. "Should this trend continue, we may be able to wind back some of the schedule reductions we'd taken in recent months," Wilson wrote in an internal message.

The airline had suspended three international routes and reduced frequencies on 26 others, cutting roughly 250 flights a week through August. That followed an earlier round of about 90 weekly cuts, bringing the total reduction to roughly 340 flights a week.

Wilson also outlined operational progress. Customer Net Promoter Score on two retrofitted Boeing 787s improved by more than 70 points, from minus 31 to plus 43, compared with non-retrofitted aircraft. Cabin comfort, in-flight entertainment and meal satisfaction scores rose from about 2.7 out of five to 4.1. Another 787 is being sent for retrofit, and around eight more new or retrofitted widebody aircraft, including a new 787-9 arriving this weekend, are expected to enter service this year.

Air India recorded its highest-ever on-time performance in June, with overall OTP reaching 86% and domestic OTP touching 90%. "Put simply, our operation is becoming more resilient, and our customers are feeling the benefit," Wilson said.

The airline also launched its first "Easy Connect" service from Varanasi, allowing international passengers to complete check-in, baggage drop and immigration at their origin airport before connecting through Delhi. Wilson said the programme would expand to more Tier-II and Tier-III cities.

On the commercial side, Air India partnered with Booking.com to let customers book flights and hotels in a single transaction, and with MakeMyTrip to showcase its upgraded cabins and network.

Separately, rating agency Icra revised its net loss estimate for the Indian aviation industry in fiscal 2027 to Rs 36,000-38,000 crore, from an earlier forecast of Rs 11,000-12,000 crore. The agency cited the West Asia conflict, elevated aviation turbine fuel prices, a weaker rupee and higher aircraft lease rentals.

Boeing, a key supplier of Air India's widebody fleet, carries an Alpha Score of 52 out of 100, reflecting mixed sentiment. The stock page is available here.

For investors tracking the airline sector, the key question is whether the stability that Wilson cited holds through the second half of the year. If airspace closures return or fuel prices spike again, the restored flights could be reversed. The Icra estimate suggests the industry's cost pressures are far from resolved, even if Air India's own operational metrics are improving.