The flagship carrier cancelled at least four flights in southern India after state-owned oil firms said they would not give the carrier jet fuel because of unpaid debts, a spokesman said.
The spokesman, who declined to be named, played down the cancellations, saying it was "not a major problem" and flights had returned to normal.
"This problem is being resolved," the spokesman told AFP. "We expect to pay for our fuel and also to obtain some assistance from the aviation ministry."
Air India's fuel woes have further dented the image of the so-called "Maharajah" of the skies, which once monopolised Indian airspace but now has been overtaken by private carriers.
The airline, which has been engulfed by financial and labour troubles, was put on a cash-and-carry payment basis late last year by the state oil firms in purchasing jet fuel.
Oil companies last week sent a notice warning Air India that it would stop supplying fuel to the airline at some airports unless it covered unpaid debts, local media reported.
Earlier this month, Air India's flight operations were grounded by a 10-day pilots' strike in quest of higher pay that cost the ailing airline millions of dollars in lost revenues.
Air India posted losses of 34.5 billion rupees ($771 million) in the first half of the last fiscal year on top of a loss of 55.5 billion rupees ($1.23 billion) during the previous 12 months, according to government figures.