Air India May Cut Flights By Up To 20% Amid Mounting Losses: Report

As per news reports from NDTV Profit, Air India is evaluating a significant reduction in its flight operations after reportedly posting a loss of nearly ₹20,000 crore in FY26. The move comes as the Tata Group-owned carrier grapples with rising aviation fuel costs, operational inefficiencies, and pressure on international routes.

Sources indicate that the airline is considering a 15–20% cut in its standalone flight schedule, while the overall reduction across the Air India Group may be relatively lower at 10–15%. If implemented, the changes could impact over 100 flights from the group’s daily operations of around 1,100 services.

International Routes Likely To See Maximum Impact

The proposed cuts are expected to be most pronounced on international routes, particularly long-haul sectors connecting India with Europe and North America. Rising fuel costs, extended flight durations, and higher crew expenses have significantly impacted profitability on these routes.

Air India has reportedly been reassessing its capacity deployment, with a focus on improving aircraft utilisation and cost efficiency. Rather than exiting markets, the airline is likely to opt for frequency reductions and schedule adjustments to maintain presence while optimising operations.

Network Optimisation Over Retrenchment

Internally, the exercise is being positioned as a network optimisation strategy rather than a pullback from expansion plans. Domestic operations may also see selective rationalisation, although the bulk of the impact is expected on international services where cost pressures are more acute.

The airline currently operates over 700 flights daily on a standalone basis, and any recalibration is expected to be carefully structured to balance demand, cost, and operational efficiency.

Potential Impact On Fares And Capacity

Industry experts suggest that a reduction in capacity, especially ahead of the peak travel season, could lead to upward pressure on airfares. Reduced seat availability combined with steady demand may tighten pricing dynamics across key routes.

A final decision on the proposed cuts is expected at an upcoming board meeting in early May.

Conclusion

Air India’s potential flight cuts highlight the challenges facing the aviation sector amid volatile fuel prices and global uncertainties. While the move may help improve operational efficiency, its impact on capacity and fares will be closely watched by both passengers and industry stakeholders.

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