Key Takeaways:
- Air India is cutting domestic flights by 26.7% for June and July.
- The carrier will run 22,868 flights, down from 31,184 in April and May.
- Surging jet fuel costs caused by the Iran conflict prompted the service cuts.
Air India is reducing its domestic flight operations by more than one-fourth in June and July as soaring jet fuel prices linked to the war in Iran continue to pressure the airline’s finances and operations.
The Tata Group-owned carrier is scheduled to operate 22,868 domestic flights during the June-July period, down 26.7% from 31,184 flights in April-May, according to aviation analytics firm Cirium. The airline confirmed it is temporarily rationalizing domestic services but did not specify the scale of the reductions.
“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,” an Air India spokesperson said.
The spokesperson said the changes are driven by “the sustained impact of high fuel prices on overall operations.”
West Asia Conflict Raises Costs for Airlines
The cuts follow Air India’s earlier decision on May 13 to scale back international flights because of rising crude oil and aviation turbine fuel prices linked to the conflict in West Asia. The war, which began Feb. 28, disrupted airspace across the Gulf region, a key transit corridor for Indian carriers flying to Europe and North America.
Air India said the crisis forced the airline to operate longer routes, increasing fuel burn and operational expenses. The airline also continues to face challenges from Pakistan’s airspace closure, which has remained in effect since tensions escalated following the Pahalgam terror attack last year.
Industry analysts say jet fuel already accounted for nearly 40% of Indian airlines’ operating costs before the conflict. Since late February, international jet fuel prices have more than doubled, sharply increasing pressure on carriers operating overseas services.
According to Cirium data and airline schedules, Air India flight cuts about 250 weekly international flights for the June-August period. The airline is expected to operate 10,427 international flights over the three months, down from 14,195 in the same period in 2025, a decline of about 27%.
“The adjustments have been made in response to a combination of factors, including continued airspace restrictions over certain regions and record-high jet fuel prices for international operations,” Air India said earlier this month.
Despite the reductions, the airline said it would continue operating more than 1,200 international flights each month across five continents.
Airline Assures Staff Amid Financial Pressure
Sources familiar with the matter said reductions in international services were not enough to offset the impact of high fuel costs, leading the airline to scale back domestic operations as well.
Air India said passengers affected by schedule changes will receive assistance through alternate bookings, complimentary date changes, or refunds.
“Air India flight cuts will continue to monitor demand and operating conditions closely, with a view to restoring frequencies as conditions stabilise,” the airline spokesperson said
The airline’s management has also taken internal cost-control measures amid the volatile operating environment. Earlier this month, senior executives informed employees that layoffs were not being considered, but annual salary increments would be deferred by at least one quarter.
The airline said planned employee promotions and bonuses for the previous financial year would continue despite the financial strain.
Air India flight cuts, which are undergoing a multibillion-dollar transformation under the Tata Group, have faced mounting operational challenges in recent months as geopolitical tensions disrupt global aviation networks and increase fuel expenses.
Visit Business Viewpoint Magazine for the latest information.
