Air India trims on domestic routes as jet fuel prices surge

New Delhi: Air India has cut frequencies on certain domestic routes between June and August as soaring jet fuel costs and weakened demand force the loss making carrier to curb expenses, the airline said on Wednesday.

The Tata Group owned carrier said the temporary adjustments follow earlier reductions to selected international services over the same period. About 20 per cent of domestic flights are expected to be withdrawn, a move the airline said will materially lower fuel consumption, which accounts for roughly 40 per cent of its operating costs.

An Air India official said jet fuel costs have risen from about ₹80,000 per kilolitre before the Iran conflict to over ₹100,000, making some routes financially unviable; aviation turbine fuel prices also vary by state due to differences in VAT. Officials added that the scale back of international services has reduced demand for domestic connecting flights to hubs such as Delhi and Mumbai, contributing to the decision.

Air India currently operates about 4,400 weekly flights — nearly 3,600 domestic and 800 international services — and said it will monitor demand closely with a view to restoring frequencies as conditions stabilise. The airline also pledged to assist affected passengers with alternative travel options, complimentary date changes or full refunds where applicable.

The carrier reported a loss of ₹26,800 crore for 2025 26, a twelvefold increase over the previous year, a shortfall that is expected to require an additional capital infusion from the Tata Group and has intensified pressure on management to reduce costs.

(Inputs from IANS)