Air India is reducing its domestic flight operations by 22% as it grapples with the sustained impact of high fuel prices, affecting thousands of passengers.
Key Points
- Air India has cut 22% of its domestic flights in response to high fuel prices.
- This decision follows a 27% reduction in international flights due to airspace restrictions and fuel costs.
- Affected passengers will be offered re-accommodation, complimentary date changes, or full refunds.
- Air India will monitor demand and operating conditions to restore frequencies as conditions stabilise.
- The airline's losses in the financial year ending March 2026 amounted to over Rs 26,700 crore.
Air India has temporarily cut 22 per cent of its domestic flights as the loss-making airline grapples with the impact of the high fuel prices, according to sources.
The decision comes two weeks after the Tata group-owned airline announced a 27 per cent reduction in international flights amid airspace curbs, as well as costlier jet fuel, which have pushed the operational costs higher for overseas sectors.
Air India operates around 4,400 weekly flights. Out of them, about 3,600 are domestic, and 800 are international services.
Air India's Official Statement On Flight Reductions
"In continuation of our previously announced adjustments to select international services between June and August 2026, we have temporarily rationalised operations on certain domestic routes during the same period, with a reduction in frequencies on select routes," Air India said in a statement on Wednesday.
The sources said 20-22 per cent of the domestic flights would be reduced.
Based on around 3,600 weekly domestic flights, the 22 per cent cut would result in a reduction of more than 790 weekly services.
Impact Of High Fuel Prices On Air India Operations
The airline said these adjustments are driven by the sustained impact of high fuel prices on overall operations.
"Air India will continue to monitor demand and operating conditions closely, with a view to restoring frequencies as conditions stabilise," it said in the statement.
The carrier also said that passengers impacted by these changes will be proactively assisted with re-accommodation on alternative flights, complimentary date changes, or full refunds, as applicable.
Previous Flight Adjustments And Suspensions
On May 13, Air India announced reducing international flights during the June-August period.
The airline would cut nearly 100 overseas flights and temporarily suspend services on seven routes, including Delhi-Chicago, which will result in up to a 27 per cent reduction in its international capacity.
The carrier will be temporarily suspending services on Delhi-Chicago, Delhi-Newark, Mumbai-New York, Delhi-Shanghai, Chennai-Singapore, Mumbai-Dhaka, and Delhi-Male routes till August.
While announcing the rationalisation of services, Air India, on May 13, also said it "may make further adjustments to its network, should the extraordinary operating environment prevail".
Air India's Financial Losses
Air India's loss stood at more than SGD 3.56 billion (over Rs 26,700 crore) in the financial year ended March 2026, as per the figures disclosed by Singapore Airlines Group in its annual financial report for 2025-2 that was released on May 14.
Singapore Airlines Group's net profit dropped 57 per cent to SGD 1.184 billion (nearly Rs 8,900 crore) in the fiscal year ended March 2026, mainly due to the absence of a prior-year one-off accounting gain related to the Vistara merger, and Air India losses.
The group owns a 25.1 per cent stake in Air India, and the remaining shareholding is with Tatas.
