Air India, the country’s only full-service carrier, will reduce its domestic flights by around 22% starting next month, the airline announced on Wednesday, days after reducing 27% of its international flights to mitigate the impact of high fuel prices on overall operations.Air India said it has temporarily rationalised operations on certain domestic routes. (X)The flight cuts come against the backdrop of the US-Israeli attack on Iran, which drove a surge in jet fuel prices and forced airlines to increase fares and reduce flights. Airlines spend up to a quarter of their operating expenses on fuel. Air India, which this month reported an annual record loss of over $2 billion in the 2025-26 fiscal year, has also struggled with the ban preventing Indian carriers from using Pakistan’s airspace.On Wednesday, Air India cited previously announced adjustments to select international services between June and August and said it has temporarily rationalised operations on certain domestic routes during the same period, with a reduction in frequencies on select routes. “These adjustments are driven by the sustained impact of high fuel prices on overall operations. Air India will continue to monitor demand and operating conditions closely, with a view to restoring frequencies as conditions stabilise,” the airline said in a statement.It added that impacted passengers will be assisted with re-accommodation on alternative flights, or offered complimentary date changes, or full refunds, as applicable. Air India operates around 3,600 domestic flights weekly.People aware of the matter said that Air India Express, Air India’s low-cost airline operating around 500 daily domestic flights, will also reduce around 10% of them. “The airline is slowly resuming flights to West Asia...it will have to cut around 10% of [domestic flights] for the coming month,” a person aware of the matter said.