Air India to Reduce Up to 22% Domestic Flights Between June and August Amid High Fuel Costs

Air India has reduced frequencies on select domestic routes for the June-August 2026 period as rising aviation fuel prices continue to increase operating expenses, as per news reports.  

The airline said the changes are temporary and linked to prevailing operating conditions. The reduction in domestic services could range between 20% and 22%.  

Air India operates around 3,600 domestic flights every week. At the higher end of the reduction, more than 790 weekly domestic services may be withdrawn during the period. 

International Operations Already Curtailed 

The latest adjustment follows the airline’s earlier decision to scale back international operations. On May 13, Air India announced a reduction of up to 27% in international capacity between June and August. 

The carrier also suspended services on seven overseas routes till August. These include Delhi-Chicago, Delhi-Newark, Mumbai-New York, Delhi-Shanghai, Chennai-Singapore, Mumbai-Dhaka and Delhi-Male. 

Air India had then cited higher fuel costs and airspace restrictions as factors affecting overseas operations and increasing overall expenditure on long-haul sectors. 

Weekly Network and Route Changes 

The airline currently operates around 4,400 flights every week, including nearly 800 international services. In a statement issued on Wednesday, Air India said it had “temporarily rationalised operations on certain domestic routes” following earlier adjustments made to international services. 

The airline said elevated fuel prices had continued to affect operational costs across the network. It also stated that passenger demand and operating conditions would be monitored before restoring frequencies on affected routes. 

Earlier this month, the airline had indicated that further changes to its network could be made if operating conditions remained unchanged. 

Financial Pressure Continues 

Air India said passengers affected by the revised schedules would be offered alternative flights, complimentary date changes or refunds, depending on eligibility. 

The reduction in services comes amid continued losses at the airline. According to figures disclosed in the annual report of Singapore Airlines Group, Air India reported a loss of more than SGD 3.56 billion, or over ₹26,700 crore, for the financial year ended March 2026. 

Singapore Airlines Group owns a 25.1% stake in the airline, while the remaining shareholding is held by the Tata Group. 

Read More: IRDAI Directs Insurers to Link Senior Executives Pay Packages with Customer Metrics! 

Conclusion 

Air India said the domestic flight reductions are temporary and linked to higher fuel costs and operating conditions. The airline will continue reviewing demand and network requirements before restoring frequencies. 

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