Air India, India's only full-service airline, has announced a 22% reduction in its domestic flights, effective next month. This decision follows a 27% cut in international flights, both aimed at addressing the financial strain caused by soaring fuel prices, which have surged due to the recent US-Israeli attack on Iran. Fuel costs account for up to a quarter of airlines' operating expenses, and Air India recently reported an annual loss exceeding $2 billion for the fiscal year 2025-26. The airline has also faced operational challenges due to restrictions on using Pakistan’s airspace. In a statement, Air India noted that it will continue to monitor demand and operating conditions to potentially restore flight frequencies as the situation stabilizes. Passengers affected by these changes will receive assistance with re-accommodation or refunds. Additionally, Air India Express is expected to cut about 10% of its approximately 500 daily domestic flights as it resumes operations to West Asia.