Airlines across India, the United States and other key markets have begun cutting flights and revising schedules as a surge in aviation turbine fuel prices linked to tensions in West Asia feeds directly into operating costs, forcing airlines to trim capacity across long-haul networks.In India, the impact has widened across carriers. Air India has moved to reduce its international services through June and July after higher fuel costs made several routes commercially unviable, according to an internal communication. The airline has already reduced some operations in April and May and is preparing further cuts, with long-haul sectors to Europe, North America and Australia among the worst affected.The carrier is also set to cut around 100 flights a day, nearly 10 per cent of its total schedule, marking one of the largest capacity adjustments in recent months, as per sources.India’s largest airline, IndiGo, has also reduced its international capacity for May by 17 per cent compared to its February baseline, reflecting the broader stress on overseas operations.Fuel remains the central pressure point. Aviation turbine fuel accounts for up to 35-40 per cent of an airline’s operating cost, and recent increases have reduced margins, particularly in price-sensitive markets such as India where taxes keep ATF costs elevated.The strain is visible across global markets. In the United States, Spirit Airlines has shut down operations after 34 years, marking one of the most significant airline failures in recent years as rising fuel costs and debt pressures made recovery unviable.Other US carriers are already scaling back. JetBlue has warned that higher fuel costs are affecting its financial outlook, while airlines in Europe, including Air France-KLM and Lufthansa, are reviewing capacity and cost projections as fuel bills rise.Across Asia-Pacific, airlines such as AirAsia and Cathay Pacific have either cut frequencies or raised fuel surcharges, while others have slowed expansion and tightened spending.The response across markets is converging, capacity cuts, fare increases and deferred expansion, as airlines try to manage a sustained rise in fuel expenses.As per industry experts, the current stress is being driven primarily by fuel prices, which have risen in recent weeks amid global supply concerns linked to West Asia. For airlines operating on thin margins, even moderate increases in fuel costs have a direct impact on route viability.The cost pressure is also beginning to reshape long-term strategy across the aviation ecosystem. “Fuel now accounts for 35-40 per cent of airline costs, forcing more disciplined fleet choices and accelerating a shift towards fuel-efficient aircraft,” said Subhakar Pappula, co-founder and CEO of Flemingo Aerospce, adding that the trend could boost demand for smaller aircraft on regional routes and create opportunities for India in aircraft manufacturing.At the same time, questions are being raised on pricing and policy response. “While there is a case for reforming ATF taxation and moving towards a uniform regime, airlines have increased base fares and added surcharges in recent months, with domestic fares rising 15–20 per cent,” said aviation expert Sanjay Lazar on social media post. He said that international fares have risen sharply as airlines pay market-linked fuel prices, while also noting that calls to cut domestic routes are difficult to justify given existing subsidies.Across markets, airlines are cutting or consolidating routes that are no longer viable, delaying expansion and attempting limited fare increases. In price-sensitive markets, the ability to pass on costs remains constrained, adding to financial pressure.Industry bodies in India have again raised concerns over high taxation on aviation turbine fuel, warning that sustained increases could affect connectivity on marginal routes.