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🇸🇬 Singapore /Economy & Trade

Air India slashes domestic flights amid Iran war fuel price spike

From The Straits Times · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Air India will temporarily reduce or cut several domestic flights due to soaring aviation fuel prices caused by the Middle East war.
  • The airline previously announced similar international route adjustments, with over a fifth of domestic flights potentially impacted.
  • Passengers affected by the changes will be rebooked or offered refunds, as Air India monitors conditions for restoring frequencies.

Air India announced on May 27 that it will temporarily reduce or cut several domestic routes, mirroring similar adjustments made to international services. The decision stems from soaring aviation fuel prices, which have been driven up by the ongoing conflict in the Middle East and its impact on the Strait of Hormuz.

In continuation of our previously announced adjustments to select international services between June and August 2026, we have temporarily rationalised operations on certain domestic routes.

— Air IndiaThe airline explained its decision to cut domestic flights.

The airline stated that these adjustments are a response to the "sustained impact of high fuel prices on overall operations." While Air India did not specify which routes or how many flights would be affected, the Press Trust of India, citing sources, suggested that more than 20% of the airline's domestic flights could be impacted.

Passengers whose flights are changed will be rebooked on alternative services or receive a full refund. Air India indicated it will "continue to monitor demand and operating conditions closely, with a view to restoring frequencies as conditions stabilise." This follows earlier announcements in May about suspending routes to Chicago, Shanghai, Male, and Singapore, and reducing flight frequency to San Francisco, Paris, Milan, and Sydney.

These adjustments are driven by the sustained impact of high fuel prices on overall operations.

— Air IndiaThe airline cited the reason for the flight adjustments.

The Middle East war presents the latest setback for Air India, which has been undergoing an ambitious overhaul since being taken over by the Tata conglomerate in 2022. The airline had ordered hundreds of aircraft and was upgrading its fleet. A significant blow to the airline's image occurred in June 2025 when Flight 171 crashed shortly after takeoff from Ahmedabad, killing nearly everyone on board and several people on the ground.

Air India will continue to monitor demand and operating conditions closely, with a view to restoring frequencies as conditions stabilise.

— Air IndiaThe airline commented on its future plans regarding flight frequencies.
DistantNews Editorial

Originally published by The Straits Times. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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