Air India could reverse some of the flight reductions introduced in recent months if the easing in West Asia tensions continues to keep fuel prices lower and more airspace accessible, CEO and Managing Director Campbell Wilson said on Friday.
The Tata Group-owned carrier had last month announced a 27 per cent reduction in its international flight schedule due to airspace restrictions stemming from the West Asia conflict and a surge in jet fuel prices that significantly increased operating costs on overseas routes. The airline has also temporarily reduced 22 per cent of its domestic flights as it continues to grapple with elevated fuel costs.
In a message to employees, Wilson said the improving geopolitical situation has begun to positively impact airline operations.
"...the Middle East conflict has abated and, though there's no guarantee it won't re-escalate, the more stable environment has allowed more airspace to become available and fuel prices to significantly moderate.
"Should this trend continue, we may be able to wind back some of the schedule reductions we'd taken in recent months - and I'm sure you all join me in hoping for this sooner than later," Wilson said.
The airline had been forced to adjust its network after the conflict in West Asia led to widespread airspace curbs and a sharp increase in aviation fuel prices. Fuel accounts for more than 40 per cent of Air India's operating costs, making fluctuations in prices a key factor in its network planning.
Wilson also said Air India is set to strengthen its fleet this year, with around eight additional new or retrofitted wide-body aircraft expected to enter service, including a new Boeing 787-9 scheduled to arrive this weekend.
With these aircraft, "we can look forward to continued upgradation and positive feedback", he added.
The airline has also recorded improvements in operational performance. According to Wilson, Air India's overall On-Time Performance (OTP) improved to 86 per cent in June.