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Air India Halves Domestic Routes Amid Ongoing Fuel Crisis

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By HeadlineDock
5/27/2026

Air India has reduced 22% of its domestic flights amid ongoing high fuel costs and curbs on airspaces. The cut comes after significant reductions in international routes earlier this month.

Air India Halves Domestic Routes Amid Ongoing Fuel Crisis

Highlights

  • Air India reduces 22% of domestic flights
  • High fuel prices impacting operations
  • Multiple international flight suspensions announced at same time
  • Passengers assured re-accommodation and refunds

Amid soaring fuel costs, Air India has announced a significant reduction in its domestic flight routes, cutting them by around 22%. The decision comes into effect during the same period as earlier reductions on international flights, from June to August 2026. According to sources, nearly 375 domestic flights will be suspended over these three months.

Operating under financial pressure due to high fuel costs:

Air India operates approximately 4,400 weekly flights, with around 800 being international. The airline's statement noted that the cut is in line with previously announced adjustments on certain international routes between June and August 2026.

The Impact of Fuel Prices

Sources indicated that Air India made this move as a response to persistent high fuel prices, which have significantly increased operational costs. The airline will monitor ongoing developments and might restore some frequencies once conditions improve.

In a bid to assist affected passengers, the carrier has assured that those impacted by these changes will be provided re-accommodation on alternative flights, complimentary date changes, or full refunds depending on applicable rules.

This is not the first time Air India has faced financial challenges due to fuel costs. According to reports, in the recently concluded fiscal year, Air India's losses stood at SGD 3.56 billion (RS 26,700 crore). The carrier also announced reductions on seven key international routes, including Delhi-Chicago and Mumbai-New York.

The cuts come in tandem with continued airspace curbs and the rising cost of jet fuel, impacting overseas sectors more heavily. Air India, which is partially owned by the Tata Group, has made further adjustments to its network while navigating an extraordinary operating environment.