Air India Ltd. plans to trim costs and cut flight schedules as the Iran war strains its finances, according to industry insiders. The move comes while the airline hunts a new chief to steer through a bleak period.

The decision follows a surge in operating expenses linked to regional instability. Cutting routes can tighten cash flow and curb losses, but it may also shrink market presence in key hubs.

With the airline already unprofitable, leadership changes could signal a strategic shift. Investors will watch for how cost cuts affect revenue streams and whether new management can restore profitability.

Ultimately, Air India’s restructuring could reshape its competitive stance in the domestic market, forcing rivals to adjust pricing and capacity strategies.