New Delhi: After cutting 145 weekly international flights, loss-making Air India will now slash its domestic flights by about 22% this summer due to rising jet fuel prices. The airline reported a loss of about Rs 25,000 crore last fiscal and is taking all measures to cut costs amid soaring operating expenses driven by high fuel prices, a crashing rupee, and muted travel demand.
Rationalisation of Domestic Operations
An Air India spokesperson said: “In continuation of our previously announced adjustments to select international services between June and Aug 2026, we have temporarily rationalised operations on certain domestic routes during the same period, with a reduction in frequencies on select routes. These adjustments are driven by the sustained impact of high fuel prices on overall operations.”
“Air India will continue to monitor demand and operating conditions closely, with a view to restoring frequencies as conditions stabilise. Passengers impacted by these changes will be proactively assisted with re-accommodation on alternative flights, complimentary date changes, or full refunds, as applicable,” the spokesperson added.
Impact on Passengers and Fares
Earlier this month, Air India decided to suspend an additional 145 weekly flights between June and August. These new cuts, which come on top of almost 100 daily flights being suspended earlier this summer, are aimed at reducing costs amid spiralling operating expenditures and mounting losses. For passengers, this means even higher fares on the truncated supply this summer, as major Gulf carriers are also operating with reduced capacity.
Reasons for International Cuts
Air India said the rationalisation of its services on select international routes between June and August 2026 was made “in response to a combination of factors, including continued airspace restrictions over certain regions and record high jet fuel prices for international operations, which significantly impact the commercial viability of certain planned services.”



