Key Highlights
- Air India reduced around 22% of domestic flights temporarily
- More than 790 weekly domestic services may be affected
- Decision linked to sustained high aviation fuel prices
- Airline had already reduced international operations by 27%
- Several overseas routes remain temporarily suspended
- Passengers to receive refunds, rebooking, and alternate travel support
- Air India reported losses exceeding ₹26,700 crore in FY26
- Rising crude oil prices continue to pressure airline operations globally
New Delhi, May 27: Air India has temporarily reduced around 22% of its domestic flight operations as soaring aviation fuel prices continue to put pressure on the airline’s operational costs.
The move comes shortly after the Tata Group-owned carrier announced a major reduction in international services for the June to August period due to rising expenses and ongoing operational challenges.
Nearly 800 Weekly Domestic Flights Affected
Air India currently operates around 4,400 weekly flights, including nearly 3,600 domestic services.
According to sources, the latest decision could lead to the reduction of over 790 weekly domestic flights across select routes during the summer travel season.
The airline said it has “temporarily rationalised” frequencies on certain domestic sectors as part of broader operational adjustments.
Fuel Prices Continue to Pressure Airlines
The airline stated that sustained high aviation fuel prices have significantly increased operational costs, forcing the company to optimize schedules and capacity.
Industry analysts say fuel expenses remain one of the biggest cost components for airlines, especially at a time when global crude oil prices continue to remain volatile due to geopolitical tensions in the Middle East.
Higher fuel costs, combined with airspace restrictions and operational disruptions, have also affected international aviation networks globally.
International Flight Cuts Already Announced
Earlier this month, Air India had announced a 27% reduction in international operations between June and August 2026.
The airline also temporarily suspended services on several international routes, including:
- Delhi–Chicago
- Delhi–Newark
- Mumbai–New York
- Delhi–Shanghai
- Chennai–Singapore
- Mumbai–Dhaka
- Delhi–Male
The airline had earlier indicated that further network adjustments could be made depending on operating conditions.
Passenger Support Measures
Air India said passengers affected by domestic schedule changes will receive assistance through:
- Alternative flight arrangements
- Complimentary date changes
- Full refunds where applicable
The airline added that it will continue monitoring market demand and fuel conditions before restoring services.
Financial Pressure on Air India
According to financial disclosures by Singapore Airlines, Air India reported losses exceeding ₹26,700 crore for the financial year ending March 2026.
Singapore Airlines Group, which owns a 25.1% stake in Air India, also reported a sharp decline in profits partly due to Air India’s financial performance and the impact of the Vistara merger.
Analysts believe the latest flight reductions reflect broader challenges facing the global aviation sector amid rising fuel prices and uncertain economic conditions.
