Air India to furlough staff and slash flights as Iran war squeezes finances
Air India, partly owned by Singapore Airlines, is preparing to furlough thousands of staff and cut flights by about 12% as the Iran war drives up fuel costs and forces longer routings, sources told Reuters. Second-quarter losses could exceed 350 million dollars. The move risks deepening booking losses across India's aviation sector.
India's flag carrier Air India is preparing to furlough thousands of employees under operational pressure from the Iran war. Sources told Reuters the airline will trim its summer schedule by about 12%, with European and US routes hit hardest as flights now divert via northern corridors, pushing fuel costs up to 30% higher.
Second-quarter losses could exceed 350 million dollars, the sources said. The Tata Sons and Singapore Airlines joint ownership has confirmed it is working on an 800-million-dollar bridge financing package rather than a share sale. The Air India CEO warned staff in an internal memo of 'a few months of bottleneck.'
The move risks deepening booking losses across India's aviation sector. IndiGo and SpiceJet say they face similar pressure. India's transport ministry is weighing fuel-tax cuts and temporary subsidies; a decision is expected with next week's budget revision.
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