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Air India Reduces Domestic Flights by 22% Due to Rising Fuel Costs

The carrier said passengers on affected routes will be rebooked or refunded as it trims service to offset higher operating costs.

  • On Wednesday, Air India announced it will temporarily reduce around 22 per cent of its domestic flights between June and August 2026, following earlier cuts to international routes including Chicago, Shanghai, Male and Singapore.
  • Geopolitical disruptions stemming from Iran's closure of the Strait of Hormuz following US-Israeli strikes on February 28 have sent aviation fuel prices soaring, forcing Air India to reroute flights and dramatically increasing fuel consumption.
  • CEO Campbell Wilson said an eight-and-a-half-hour Delhi-to-London flight now takes 12 hours due to longer routing, while Air India suspended routes to four cities and cut frequencies to San Francisco, Paris, Milan and Sydney.
  • Affected passengers will be rebooked on alternative flights or offered full refunds, while Air India said it will monitor demand and operating conditions closely to restore frequencies once conditions stabilise.
  • CEO Wilson, departing in a couple of months, warned his successor will inherit an environment as challenging as the past, while the Tata Group pursues aggressive expansion including fleet modernisation and Vistara integration.
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The Economic Times broke the news in Mumbai, India on Wednesday, May 27, 2026.
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