Air India considers widespread flight reductions amid rising fuel costs

Air India is reportedly evaluating a notable reduction in its flight operations following financial pressure and soaring aviation fuel costs, according to industry sources.

The Tata Group-owned carrier is said to have recorded a loss of nearly Rs 20,000 crore for the 2025–26 financial year, prompting a review of its current network and capacity strategy.

Sources indicate the airline is considering trimming its schedule by around 15–20%, while the overall reduction across the wider Air India Group may be slightly lower, estimated at 10–15%. If implemented, the move could impact more than 100 flights from the group’s approximately 1,100 daily services. On its own, Air India currently operates over 700 domestic and international flights each day.

The airline has not officially commented on the reported plans.

Industry insiders note that any cutbacks could tighten seat availability and potentially lead to higher ticket prices, especially during the upcoming peak travel season.

International routes are expected to face the most significant adjustments, as increased fuel expenses, extended flight durations, and higher crew costs have put pressure on profitability. Long-haul services, particularly those requiring extended operational hours, have seen declining efficiency and rising operational challenges.

Flights connecting to Europe and North America are likely to be among the most affected, with the airline reportedly exploring temporary frequency reductions and schedule changes rather than withdrawing entirely from key markets.

Internally, the initiative is being framed as a strategic network optimisation effort aimed at improving cost efficiency, rather than a slowdown in expansion.

While some domestic routes may also be reviewed, the primary focus remains on international operations, where cost pressures are more pronounced.

A final decision on the proposed adjustments is expected to be made at a board meeting scheduled for early May.