Qantas is considering axing its loss-making Sydney-Mumbai service after a disagreement with its pilots' union over meal allowances.

The airline will be forced to divert today's flight through Melbourne after the Australian and International Pilots Association refused to renew a concession that allows pilots to fly beyond hours outlined in their enterprise agreement.

The concession's end on Wednesday means Qantas must now change crews in Melbourne before continuing on to Mumbai instead of flying non-stop from Sydney.

However, an airline source said this would increase losses on the route and was likely to be the final straw for the service.

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