Air India Cuts Flights on Domestic Routes as Jet Fuel Cost Soars

NEW DELHI:
Air India has reduced the number of flights on some domestic routes between June and August as the loss-making airline struggles to cut costs amid soaring fuel prices triggered by the Middle East conflict, a statement said on Wednesday.

The Tata Group-owned airline said in the statement that the move follows its earlier decision to scale back certain 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,” it said.

Air India, which is under pressure to cut losses, is expected to scrap around 20 per cent of its domestic flights, which will bring down fuel consumption that accounts for around 40 per cent of operational costs.

An Air India official said the cost of jet fuel for the airline has surged from around Rs 80,000 per kilolitre before the Iran war to more than Rs 1 lakh, which makes it financially unviable to operate flights on certain routes. The price of aviation turbine fuel varies across states depending on the amount of VAT that is charged by the state government.

According to airline officials, the reduction in international operations due to the Iran war has also had a cascading effect on the demand for domestic connecting flights to hubs like Delhi and Mumbai, which has come down. This is attributed to another reason for cancelling flights.

Air India currently operates around 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’s statement added.

The carrier also assured that affected passengers would be assisted through alternative flight arrangements, complimentary date changes, or full refunds, wherever applicable.

Air India is reported to have piled up a loss of Rs 26,800 for the financial year 2025-26, which represents a 12-fold increase over the loss incurred in 2024-25 and will require the Tata Group to make an additional fund infusion in the airline. Consequently, the airline management is under immense pressure to bring down costs and reduce losses.