Air India unbundles Basic fare on 24 short-haul routes, trimming ₹500-600 by dropping meals

Tata-owned Air India is rolling out a Basic fare on ~24 sub-1.5-hour routes spanning Delhi, Chandigarh, Amritsar, Hyderabad and Bengaluru, stripping complimentary meals to cut fares by ₹500-600. Move comes as the carrier stares at ₹28,000 crore FY26 losses and slashes 14.6 lakh June seats.

— Source published Wed, 17 Jun, 2026, 11:42 IST · First seen Wed, 17 Jun, 2026, 11:56 IST · Source Business Today · Latest

What happened

Air India is launching an unbundled Basic fare on ~24 short-haul routes (1-1.5 hr), cutting fares by ₹500-600 by removing complimentary meals, amid ₹28,000

Key facts

  • ₹500-600 fare reduction
  • ₹28,000 crore FY26 losses
  • 15 kg checked baggage
  • 7 kg cabin baggage
  • 14.6 lakh seats cut in June

Why this matters

Air India's Basic fare launch on 24 short-haul routes directly targets IndiGo's no-frills moat, opening a window for LCC partnerships or codeshare plays as legacy carriers blur into hybrid models.