Fuel switch incident, surging fuel prices put Air India’s turnaround under fresh test

[NEW DELHI] A fuel switch incident involving an Air India Boeing 787 Dreamliner has renewed scrutiny of the Indian full-service carrier’s operational reliability at a delicate period in its turnaround efforts, even as rising fuel costs and tensions in the Middle East add fresh uncertainty for airlines globally.

Rising jet fuel prices triggered by the Middle East crisis compound the pressures facing airlines. With the region critical to global oil supply and aviation routes, industry executives have warned that crude prices nearing US$90 a barrel are weighing on airline economics.

Airlines are also adjusting operations across parts of the Gulf as tensions affect travel flows and airspace access.