Air India CEO Campbell Wilson warned airline employees of a possible travel demand squeeze due to the rising cost of aviation turbine fuel and urged for “tighter-than-ever” control on all non-essential spending.

He also cautioned that, depending on how the situation evolves, the airline may have to trim capacity

Also Read: Iran-Israel LIVE Updates on March 21, 2026

In his first remarks on the impact of the ongoing West Asia conflict, in an internal memo on March 20 reviewed by The Hindu, Mr. Wilson noted that Indian carriers have introduced fuel surcharges, which start at around ₹400 for domestic travel and are higher for international routes, to offset escalating fuel costs. However, he cautioned that fare increases have a limit.

“Not every customer is willing to pay higher airfares, so there is a limit to how high we can price before demand drops,” he wrote in an internal communication.

He also flagged the risk of weakening travel sentiment amid wider economic uncertainty. “Given the current climate, customers and companies may be less willing to travel than before the conflict and could choose to defer trips,” he said.

The financial impact of the oil and energy crisis due to the conflict in the Gulf region will only hit next month, Mr. Wilson said. He was referring to the monthly revision in ATF prices by oil manufacturing crisis.

“But already airlines in some parts of the world are reducing some flights due to high fuel prices. Depending on how fuel costs, airfares and customer demand moves, we may also have to adjust,” he said, in what appear to be early warning signs. United Airlines Scott Kirby said that the airline would be cutting some unprofitable flights over the next two quarters as it was preparing for oil to rise as high as $175 a barrel and remain above $100 until the end of 2027. Scandinavian Airlines is also cutting 1000 flights in April– it operates 800 flights daily.

In the three weeks since the conflict began, Air India has cancelled around 2,500 flights to the region, the CEO wrote. The airline is operating only about 30% of its flights to West Asia due to the closure of airspace and safety concerns.

The airline’s long-haul and ultra-long-haul flights to Europe and North America are now being rerouted along even longer paths than during the Pahalgam episode last April, “consuming more fuel and adding more time,” the CEO said, underscoring the mounting operational strain across Air India’s network.

Amid the disruption, the airline is also seeing “pockets of new demand,” particularly for non-stop services between India and Europe that bypass West Asia. Seizing the opportunity, Air India is operating 118 additional flights on these routes between March 10 and March 28, redeploying larger aircraft from Gulf sectors to long-haul operations.

In what could be the first sign of cracks due to the fiscal stress brought on by skyrocketing global oil prices, Indian oil-marketing companies on Friday (March 20, 2026) increased the price of the premium variant of petrol and industrial diesel by approximately ₹2-3 and ₹22 per litre, respectively.

The government, however, assured that this is limited only to the premium variants and that the prices of the normal grades of petrol and diesel remain unchanged.

Iran-Israel war updates on March 20, 2026

In a social media post on Friday (March 20, 2026) evening, State-owned IndianOil confirmed the price of its premium petrol XP-95 which increased by ₹2 for every litre from ₹99.87 to ₹101.89. Hindustan Petroleum also announced a similar increase.

“IndianOil has ensured no increase in regular automotive fuel prices in India, even amid rising international costs,” the post said. “A limited revision applies only to premium petrol XP-95, with minimal impact on overall consumption.”

The refiner said that the premium variant of petrol accounts for about 5% of the overall petrol sales. Other than the car fuel, the price of industrial diesel was revised upwards from ₹87.67 to ₹109.59 per litre.

The hike in the price of premium petrol and industrial diesel contrasts with the OMCs’ actions when oil prices were low. A previous analysis by The Hindu found that the OMCs did not lower the price of any form of petrol or diesel over the past two-and-a-half years, even when oil prices fell to an average of $64 a barrel.

As of Friday (March 20, 2026) evening, Brent crude futures were trading at $108.1 for every barrel, continuing an upward trajectory as tensions continue to mount in West Asia. Further, according to data from the Petroleum and Planning Analysis Cell, India’s crude oil basket – the average price at which India imports oil – was averaging $117.09 for every barrel in the current month.

Earlier in the day, addressing queries about the increase in petrol prices, Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas, said the hike would not impact the common man.

“That is [the premium variant] hardly represents 2-4% of the petrol which is sold every day in the country,” she said. “It is not that price of petrol has been increased [affecting] the common man.”

The increase in the price of premium car fuel also brought barbs from the Opposition. “While people are already troubled by the gas shortage, now they will also be made to pay on petrol,” the Indian National Congress said in a social media post.

(With inputs from Sandeep Phukan)

U.S. President Donald Trump on Saturday (March 14, 2026) urged other nations to send ships to help secure the Strait of Hormuz, the critical chokepoint for global oil supplies disrupted by the West Asia war.

Mr. Trump, who has said the United States will soon start escorting tankers through the strait, posted on Truth Social that “Many countries, especially those who are affected by Iran’s attempted closure of the Hormuz Strait, will be sending War Ships, in conjunction with the United States of America, to keep the Strait open and safe.”

Iran-Israel war updates on March 14, 2026

The U.S. President added: “Hopefully China, France, Japan, South Korea, the UK, and others, that are affected by this artificial constraint, will send Ships to the area.”

Iranian strikes have all but halted maritime traffic in the strait, through which a fifth of global crude oil and liquefied natural gas normally pass. It is just 54 kilometers (34 miles) wide at its narrowest point.

With oil prices spiking, Mr. Trump was asked Friday (March 13, 2026) when the U.S. Navy would begin escorting tankers through the Strait of Hormuz. “It’ll happen soon, very soon,” he said.

In his post on Saturday (March 14, 2026), Mr. Trump asserted that Iran’s military capability had been eliminated but he conceded that it was still able to attack the strait.

“We have already destroyed 100% of Iran’s Military capability, but it’s easy for them to send a drone or two, drop a mine, or deliver a close range missile somewhere along, or in, this Waterway, no matter how badly defeated they are,” he wrote.

As he urged nations to send ships to the strait, he added that “the United States will be bombing the hell out of the shoreline, and continually shooting Iranian Boats and Ships out of the water. One way or the other, we will soon get the Hormuz Strait OPEN, SAFE, and FREE!”