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New Delhi: Air India CEO Campbell Wilson warned employees that the Middle East conflict would have a significant financial impact on the carrier, with the worst yet to come.In a note to staff, Wilson on Friday said the airline has cancelled around 2,500 flights to the region over three weeks and is currently operating just 30% of its normal Middle East schedule due to closed airports and restricted airspace.Fuel costs have more than doubled, but Wilson said most of the impact would only hit the airline's books from next month.Flights to Britain, Europe and North America are being rerouted around the conflict zone, adding to fuel costs on each sector. The detours extend routings already lengthened since the Pahalgam incident last year.Air India has imposed fuel surcharges on new tickets, a step taken by other Indian carriers as well. Wilson cautioned, however, that fares could only be raised so far before passengers chose not to fly.Demand itself was at risk. Wilson said economic uncertainty stemming from the conflict could reduce willingness to travel among both corporate and leisure passengers.He did not announce specific capacity cuts but said the airline would adjust depending on how fuel costs, fares and demand developed. Some airlines in other parts of the world had already begun reducing flights, he noted.Wilson said operations teams were constantly monitoring and adjusting schedules as conditions changed, and singled out staff physically present in affected Middle East areas.Airlines are demanding government support against any spike in the price of jet fuel, which typically accounts for 15-25% of operating cost.