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Air India Cuts Domestic Flights Amid Fuel Price Surge and Mounting Losses

AIR INDIA EXPRESS ANNOUNCES ‘FREEDOM SALE’ WITH 5 MILLION SEATS ON OFFER

New Delhi, May 27 Air India has temporarily reduced flight frequencies on select domestic routes between June and August 2026 as the airline grapples with soaring fuel costs and rising losses amid the ongoing Middle East conflict.

The Tata Group-owned carrier said the move follows its earlier decision to scale back some international services during the same period.

“We have temporarily rationalised operations on certain domestic routes… with a reduction in frequencies on select routes,” Air India said in a statement.

The airline is expected to cut nearly 20 per cent of its domestic flights, aiming to reduce fuel consumption, which accounts for almost 40 per cent of operating costs.

According to airline officials, the price of aviation turbine fuel (ATF) has climbed sharply from around Rs 80,000 per kilolitre to over Rs 1 lakh following the Iran conflict, making operations on some routes financially difficult. Reduced international traffic has also lowered demand for domestic connecting flights to major hubs such as Delhi and Mumbai.

Air India currently operates about 4,400 weekly flights, including nearly 3,600 domestic and 800 international services.

The airline said it will continue to review demand and operating conditions and restore services when conditions improve. Passengers affected by cancellations will be offered alternative flights, complimentary date changes or full refunds, where applicable.

Air India is estimated to have reported a Rs 26,800 crore loss in FY26, intensifying pressure on management to control costs and reduce losses.

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