Foreign carriers race to capture India’s booming skies as Air India cuts global flights – Firstpost

Foreign airlines are rapidly expanding their presence in India’s international aviation market as Air India grapples with widespread flight cuts triggered by the Iran conflict, Pakistan’s airspace restrictions and rising operational costs, reshaping competition on some of the world’s busiest long-haul routes.

European and Asian carriers including Lufthansa Group, Swiss, KLM and Cathay Pacific have increased flights to and from India in recent months, capitalising on booming outbound travel demand and disruptions that have
weakened Air India’s international network.

According to aviation analytics firm OAG, foreign airlines’ share of India-origin international scheduled flights rose to 58.4 per cent during the March-May period, up sharply from 51.2 per cent a year earlier.

The shift comes as Tata Group-owned Air India significantly trims its overseas operations amid mounting pressure from longer flying times, expensive rerouting and higher fuel costs caused by instability in West Asia and restrictions on Pakistani airspace.

Air India scheduled 6,404 international flights from India between March and May, down 17.5 per cent year-on-year, according to OAG data. The carrier this week announced further cuts on several European and North American routes for the June-August period.

The airline’s US operations have been hit particularly hard. Route-level Cirium data showed Air India’s scheduled India-US flights plunged 77.4 per cent during the March-May period compared with last year.

The disruptions represent a major setback for Air India’s ambitious transformation strategy under the Tata Group, which has invested heavily in fleet upgrades, new aircraft orders and premium cabin refurbishments to position the carrier as a global aviation contender.

Air India has also been squeezed by Pakistan’s continued ban on Indian carriers using its airspace since April 2025, forcing flights to Europe and North America onto longer and costlier routes.

Outgoing Air India chief executive Campbell Wilson acknowledged the strain in an internal memo earlier this month, saying the “massive rise” in jet fuel prices, coupled with airspace closures and extended flying times, had rendered many international routes unprofitable.

The financial pressure is mounting. Air India Group is expected to post record losses exceeding $2.12 billion in fiscal 2025-26, according to a report by Reuters. More than 60 per cent of the airline group’s revenue comes from international operations.

As Air India retrenches, global rivals are aggressively moving to fill the gap.

Swiss International Air Lines, part of Lufthansa Group, increased scheduled India flights by 39 per cent during the March-May period, driven largely by a sharp rise in services on the Delhi-Zurich route. The airline added a second daily service between the two cities amid what it described as “very strong demand” from Indian travellers heading to Europe and the United States.

KLM also expanded its India operations, increasing scheduled flights by nearly 20 per cent during the same period. The Dutch carrier said it had seen rising demand from Indian passengers avoiding traditional Gulf transit hubs because of regional instability.

Cathay Pacific similarly boosted India-Hong Kong frequencies by 19 per cent year-on-year as more Indian travellers opted to connect to North America through Hong Kong instead of West Asian hubs.

The competitive pressure on Air India has intensified further in the India-US market, where longer flight durations have weakened the appeal of its non-stop services.

The airline has already suspended flights from Delhi to Washington and halted services from Bengaluru and Mumbai to San Francisco over the past year. This has enabled US carriers including American Airlines and United Airlines to strengthen their position on lucrative trans-Pacific routes.

Industry executives say Indian travellers continue to favour foreign airlines when ticket prices are comparable, particularly because of shorter travel times and stronger service perceptions.

Despite the current disruptions, India remains one of the world’s fastest-growing aviation markets, driven by rising disposable incomes, expanding outbound tourism and increasing business travel demand.