NEW DELHI — Air India has reduced flights on some domestic routes between June and August as the loss-making carrier works to control costs amid a sharp rise in jet fuel prices linked to the Middle East conflict.
The Tata Group-owned airline said Wednesday that the domestic reductions follow previously announced cuts to select international services.
“In continuation of our previously announced adjustments to select international services between June and August 2026, we have temporarily rationalised operations on certain domestic routes during the same period, with a reduction in frequencies on select routes,” Air India said.
The airline is expected to cut about 20% of its domestic flights, a move aimed at reducing fuel consumption. Fuel accounts for about 40% of the carrier’s operating costs.
An Air India official said the airline’s jet fuel cost has risen from about Rs 80,000 per kiloliter before the Iran war to more than Rs 1 lakh, making some routes financially unviable. Aviation turbine fuel prices vary by state depending on value-added tax charged by state governments.
Airline officials said reductions in international operations caused by the Iran conflict have also reduced demand for domestic connecting flights to hubs such as Delhi and Mumbai, contributing to the decision to cancel some flights.
Air India currently operates about 4,400 weekly flights, including nearly 3,600 domestic and 800 international services.
“Air India will continue to monitor demand and operating conditions closely, with a view to restoring frequencies as conditions stabilise,” the airline said.
The carrier said affected passengers would be assisted with alternative flight arrangements, complimentary date changes or full refunds where applicable.
Air India is reported to have posted a loss of Rs 26,800 crore for fiscal 2025-26, a 12-fold increase from the previous year’s loss. The mounting losses are expected to require an additional fund infusion from Tata Group and have increased pressure on airline management to reduce costs. (Source: IANS)
