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Is Air India facing drop in flights due to US changing policies?

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Highlights:

  • US travel demand for Air India has dropped due to airspace curbs, longer routes, fuel needs, and visa issues.
  • CEO Campbell Wilson says the decline is temporary and long-term demand remains strong.
  • Air India operates 51 weekly flights to six North American destinations.
  • The Boeing 777 fleet will shrink in 2026 as older and leased aircraft exit service.
  • Some pilots have been offered reduced-hours contracts as the fleet transitions to 787s and A350s.

Air India’s CEO Campbell Wilson said on Monday (24) that travel demand to the US has fallen. He explained that several issues are responsible, including airspace restrictions, longer flying times, extra refuelling stops, and visa delays that make travellers hesitant.

Despite these challenges, Wilson said the drop in demand is only temporary. Air India remains confident about the long-term potential of the North American market.

Air India currently flies to six North American cities: Newark, New York, Chicago, San Francisco, Vancouver, and Toronto. It operates 51 one-way flights each week using Boeing 777 and Airbus A350 aircraft.

The drop in Air India’s travel demand to the US is partly related to H-1B visa issues, among other factors like airspace restrictions, longer flight routes, and visa delays.

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The sharp decline in H-1B visa petitions and approvals for Indian companies in 2025, falling by about 37 per cent compared to last year and markedly over the past decade, reflects tighter US policies.

These include increased fees, stricter eligibility rules, and longer processing times, which create uncertainty for Indian travelers, particularly IT professionals who frequently use these visas for work in the US. This has contributed to reluctance in travel bookings to the US market.

Air India’s CEO Campbell Wilson cited visa delays as one reason for temporarily reduced demand, aligning with the broader visa-related travel hesitancy. The airline currently operates 51 weekly flights to six North American cities but is adjusting its fleet and pilot contracts in response to these challenges.

In summary, yes, the issues with H-1B visas are significantly contributing to the current dip in US-bound Air India travel demand, alongside operational challenges like airspace curbs and longer flight times.​

Wilson also said the airline has offered some pilots the option to temporarily work under contracts that require fewer flying hours. This mainly affects Boeing 777 pilots, as Air India will reduce the size of its 777 fleet in 2026. The airline now has 22 Boeing 777s, but some leased planes must be returned, and some older aircraft will be retired. New Boeing 787s and Airbus A350s will take their place.

Wilson noted that India needs to strengthen its position in global aviation. He said policies that help airlines train and retain pilots, including longer notice periods, could benefit the country’s aviation sector.

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