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The impact of last week’s tragic plane crash involving Air India is becoming increasingly evident, with the airline now witnessing a sharp drop in passenger bookings and several flight cancellations.

On Friday, Air India cancelled eight flights, including four on international routes, citing operational reasons. The airline continues to grapple with the fallout of the deadly accident on June 12, when flight AI-171, bound for London and carrying 242 passengers and crew, crashed in Ahmedabad.

The devastating crash killed all but one person onboard and resulted in atleast 29 additional fatalities on the ground after the aircraft smashed into a medical college complex shortly after take-off.

International and Domestic Flights Cancelled Amid Operational Disruptions

In its Friday statement, Air India detailed the latest round of cancellations, which affected both domestic and international operations. The suspended international services included Dubai-Chennai (AI906), Delhi-Melbourne (AI308), Melbourne-Delhi (AI309), and Dubai-Hyderabad (AI2204). On domestic routes, cancellations were reported for Pune-Delhi (AI874), Ahmedabad-Delhi (AI456), Hyderabad-Mumbai (AI2872), and Chennai-Mumbai (AI571).

One of the domestic flights, the Delhi-Pune route, was cancelled after a bird strike was detected upon the aircraft’s arrival in Pune, leading to the plane being grounded for detailed inspection, reported PTI.

Air India assured passengers that all necessary arrangements had been made, including providing accommodation for those stranded, along with refunds or complimentary rescheduling options.

Bookings Decline Sharply, Fares Adjust Amidst Uncertainty

The airline is also contending with a significant downturn in bookings. According to the Indian Association of Tour Operators (IATO), reservations for Air India flights have dropped by nearly 20 per cent across both domestic and international sectors following the crash. Average ticket prices have seen reductions ranging from 8 to 15 per cent.

Rajiv Mehra, General Secretary of the Federation of Associations in Indian Tourism & Hospitality (FAITH), echoed these concerns, stating that booking volumes for Air India had fallen by approximately 20 per cent, while fares have decreased by around 10 per cent on certain routes where competition from rival carriers remains strong.

“Following the unfortunate incident involving Air India, we have observed a temporary decline in bookings, particularly on international sectors,” IATO president Ravi Gosain told PTI. “While the exact percentage varies by route, our estimates indicate a dip of around 18-22 per cent on international bookings and a 10-12 per cent fall domestically in the immediate aftermath. However, this appears to be a short-term sentiment-driven reaction, as confidence typically stabilises over time,” he added.

Gosain further noted that domestic ticket prices have reduced by an average of 8-12 per cent on sectors where Air India competes with budget carriers like IndiGo and Akasa. On international routes, particularly to Europe and Southeast Asia, fares have declined between 10 and 15 per cent, driven by a combination of promotional offers and market corrections responding to lowered demand.

CEO Reaffirms Support Efforts and Cautions Against Speculation

Meanwhile, Air India CEO and Managing Director Campbell Wilson addressed the ongoing situation in a message, highlighting that approximately 500 Air India employees, along with 17 staff members from other Tata companies, are currently stationed in Ahmedabad to support the families of the victims, including passengers, crew, and ground casualties.

Wilson also clarified that Air India had senior-level representation present during the final rites of the 12 crew members who perished in the crash. His statement came amidst allegations circulating on social media suggesting that Tata Group board members were absent at the crew members’ funerals.

Looking ahead, Wilson indicated that Air India’s international schedule would be gradually restored, though it remains reduced by 15 per cent until July 15 due to intensified pre-flight inspections of its wide-body fleet and other geopolitical factors.

Commenting on the ongoing investigation into the crash, Wilson stressed the need for caution. “There are many theories but, as the accident is now under official investigation by the AAIB, it is not appropriate for us to comment or speculate,” he stated. “We are providing all information requested by the AAIB and are cooperating completely,” he added, noting that while the final report could take several months to complete, interim updates may be issued by the AAIB during the process.