New Delhi: Air India has reduced around 200 weekly flights from June to August as part of a cost-control exercise driven by rising jet fuel prices and the sharp depreciation of the rupee. These cuts come in addition to nearly 90 flights already reduced in May.
The airline, which previously operated about 1,200 daily flights, is taking aggressive steps to manage mounting financial pressure after reporting losses of over Rs 22,000 crore in the last fiscal year, TOI reported.
Air India cuts 200 weekly flights
The latest cuts include several key international routes. Services such as the thrice-weekly Delhi–Chicago flight, four-times-weekly Delhi–Newark, Delhi–Shanghai, and Mumbai–New York routes have been suspended for now.
Daily flights between Delhi and Male, Chennai and Singapore, and Mumbai and Singapore have also been temporarily halted.
Industry-wide, airlines are facing higher operating costs due to global fuel price volatility. Passing on these costs entirely would significantly increase ticket prices, which could reduce demand.
Aviation demand is also expected to soften further amid weaker economic sentiment and reduced discretionary travel.
Aviation analysts noted that non-essential travel such as holidays is usually the first category to be cut when costs rise.
Optional meals, lounge access
Air India is also exploring structural cost-cutting measures beyond flight reductions. The airline is considering “unbundling” services to reduce fares and improve flexibility for passengers.
The airline is also evaluating changes to its business class offerings, including optional lounge access.
Lounge usage data shows that many frequent flyers rarely use airport lounges despite paying for access indirectly through ticket prices.
If implemented, passengers opting out of meals on domestic and short-haul international flights (under two hours) could save around Rs 250 per ticket.
Similarly, unbundling lounge access could reduce fares further, as lounge services cost airlines around Rs 600–1,400 per user depending on airport category.
Banking industry practices are also moving in a similar direction, with credit card providers reducing complimentary lounge access to manage costs.
Air India has not yet issued an official comment on the latest set of flight cuts.
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