Air India has announced a major reduction in its domestic flight operations, cutting nearly 22% of services starting next month as soaring jet fuel prices continue to impact the aviation industry.
The airline’s decision comes days after it reduced around 27% of its international flights between June and August amid rising operational costs linked to escalating tensions in the Middle East.
Iran Conflict Pushes Fuel Prices Higher
The latest round of flight cuts follows the recent US-Israeli military action against Iran, which triggered a sharp increase in global crude oil and aviation turbine fuel prices.
Fuel accounts for nearly one-fourth of airline operating expenses, making airlines highly vulnerable to sudden spikes in energy costs.
Industry experts say the crisis has forced carriers worldwide to rethink schedules, raise fares and optimise routes to control losses.
Air India Confirms Temporary Route Rationalisation
In a statement issued on Wednesday, Air India said it has “temporarily rationalised operations” on select domestic routes.
The airline added that flight frequencies on certain sectors would be reduced between June and August due to continued pressure from elevated fuel prices.
“These adjustments are driven by the sustained impact of high fuel prices on overall operations,” Air India stated.
The Tata Group-owned carrier also said it would continue reviewing passenger demand and operational conditions before restoring services.
International Flights Already Reduced by 27%
Earlier this month, Air India announced cuts to several international routes, reducing approximately 27% of overseas services during the summer period.
Apart from rising fuel prices, the airline is also facing operational challenges due to the continued closure of Pakistan’s airspace for Indian carriers.
The restriction has forced airlines to take longer alternate routes on several international sectors, increasing both fuel consumption and flying time.
Record Losses Add Pressure
Air India recently reported a record annual loss exceeding $2 billion for the financial year 2025-26, adding further strain to its operations.
The airline has been undergoing an extensive restructuring and fleet modernisation process under the Tata Group, but rising global costs and geopolitical tensions have complicated recovery efforts.
Air India Express Also Expected To Cut Flights
Sources familiar with the matter said Air India Express, the airline’s low-cost subsidiary, may also reduce nearly 10% of its domestic flights in the coming weeks.
Officials indicated that the budget carrier is gradually restoring services to West Asian destinations while balancing aircraft availability and operational costs.
Air India Express currently operates nearly 500 domestic flights daily.
Passengers To Receive Refunds Or Alternate Flights
Air India assured travellers that affected passengers would receive support, including:
- Re-accommodation on alternate flights
- Complimentary date changes
- Full refunds where applicable
The airline currently operates around 3,600 domestic flights every week across India.
Aviation Industry Faces Uncertain Months Ahead
With geopolitical tensions remaining high and oil prices continuing to fluctuate, aviation analysts believe airlines may face additional pressure in the coming months.
Travellers are also expected to experience higher airfares, route changes and schedule adjustments as airlines attempt to manage rising operational costs.
