Air India, the country’s only full-service airline, will reduce its domestic flights by about 22% from next month, the airline announced on Wednesday, days after cutting its international flights by 27% to mitigate the impact of rising fuel prices on overall operations.
The flight cuts come against the backdrop of the US-Israeli attack on Iran, which led to a rise in aviation fuel prices and forced airlines to increase prices and reduce flights. Airlines spend up to a quarter of their operating expenses on fuel. Air India, which this month reported a record annual loss of more than $2 billion in the 2025-2026 fiscal year, has suffered from a ban that prevents Indian airlines from using Pakistani airspace.
On Wednesday, Air India noted previously announced adjustments to select international services between June and August, and said it had temporarily rationalized operations on some domestic routes during the same period, while reducing frequencies on select routes. “These adjustments are driven by the ongoing impact of rising fuel prices on overall operations. Air India will continue to closely monitor demand and operating conditions, with the aim of restoring frequencies as conditions stabilize,” the airline said in a statement.
It added that affected passengers will be assisted with re-accommodation on alternative flights, offered free date changes, or a full refund, as applicable. Air India operates around 3,600 domestic flights weekly.
Air India Express, Air India’s low-cost carrier that operates about 500 daily domestic flights, will also cut about 10% of them, people familiar with the matter said. He added, “The airline is slowly resuming its flights to West Asia… It will have to reduce about 10% of them.” [domestic flights] next month, a person familiar with the matter said.
