Archive · 19 Jul 2026
Air India's Nipun Aggarwal on sustainable oil prices for airlines
Nipun Aggarwal from Air India says that airlines can work well when oil prices are between $90 and $100 per barrel.
When oil prices were very high, like over $120 in April, airlines had to make changes like cutting flights and adding extra fuel charges.
Now, prices are lower, but if they stay too high for a long time, it might make flying more expensive for people, and fewer people might choose to fly.
Airlines also have to think about other things like which airspaces and airports are open, what their competitors are doing, and how people feel about traveling because of world events.
Air India Express has already brought back most of its flights to the Middle East and hopes to be back to normal by October if there are no more big problems in the world.
Airlines can sustain operations with oil prices around $90-$100 per barrel.
High oil prices in April forced airlines to cut capacity and impose fuel surcharges.
Current oil prices are below $90 per barrel, but geopolitical tensions remain a concern.
Prolonged high oil prices could reduce passenger demand and impact network economics.
Air India Express has restored around 90% of its Middle East network and expects full restoration by October.
- Who
- Nipun Aggarwal, Air India Express Chairman and Air India Chief Commercial Officer
- What
- Airlines can sustain operations with oil prices around $90-$100 per barrel
- When
- Comments made during the launch of new services to Abu Dhabi
- Where
- Launch event for Air India Express's new services to Abu Dhabi from Navi Mumbai, Indore, and Lucknow
- Why
- To discuss the impact of oil prices on airline operations and sustainability
Airlines
Passengers
Impact of high oil prices
Airlines
Airlines can operate but may face reduced demand and network economics.
Passengers
Passengers may find airfares less affordable, potentially reducing travel.
- Optimal Oil Price Range
- $90-$100 per barrel
- Current Oil Price
- Below $90 per barrel
- Peak Oil Price
- Over $120 per barrel in April
- Air India Express Network Restoration
- Around 90% of Middle East network restored
- Expected Full Restoration
- By October, if no further geopolitical escalation