NEW DELHI, May 27: Air India has announced a temporary reduction in its domestic flight operations for the June-August 2026 period as soaring aviation fuel prices continue to put pressure on the airline’s finances and operational planning.
According to sources, the airline is expected to scale down nearly 20 to 22 per cent of its domestic services during the period. The move comes amid broader cost-control measures being adopted by the carrier to manage increasing expenditure linked to fuel and maintenance operations.
The airline currently operates nearly 4,400 weekly flights, including around 3,600 domestic services and approximately 800 international flights. Sources indicated that international operations have also witnessed a reduction of nearly 27 per cent on select routes.
In an official statement issued on Wednesday, the airline said it had rationalised frequencies on certain domestic sectors following previously announced adjustments to some international services.
The carrier stated that the decision was taken due to the sustained impact of elevated fuel prices on overall airline operations and route economics. Industry experts said rising aviation turbine fuel (ATF) prices have significantly increased operational burdens across the aviation sector in recent months.
The airline clarified that the reduction is temporary and will remain under review depending on market demand and operational conditions. Officials said services may gradually return to normal once fuel prices stabilise and financial pressures ease.
Passengers affected by the revised schedules will be offered alternative travel arrangements, including rebooking on other flights, complimentary date changes or full refunds, depending on eligibility and ticket conditions.
Aviation analysts believe the decision reflects wider challenges facing airlines globally as volatile crude oil prices continue to impact profitability and network planning. Domestic carriers are increasingly reassessing route structures, flight frequencies and operating costs to maintain financial stability.
The development comes at a time when India’s aviation sector is witnessing strong passenger demand but also facing mounting cost pressures due to fluctuating global energy markets.
Industry observers said airlines may continue to optimise operations over the coming months if fuel prices remain elevated and operational expenses continue to rise.