Air India unbundles economy: basic fare drops complimentary meals on select domestic routes

Tata-owned Air India launches a basic economy fare on select domestic flights, stripping out complimentary meals to court price-sensitive flyers. The pilot follows a Rs 26,700 crore FY26 loss and 14.6 lakh seats cut in June amid airspace closures, signalling a low-cost pivot for the full-service carrier.

— Source publishedTue, 16 Jun, 2026, 23:44 IST·First seen Wed, 17 Jun, 2026, 00:09 IST·Source Business Today · Latest

What happened

Air India launches a basic economy fare on select domestic routes without complimentary meals, targeting price-conscious flyers. Pilot move unbundles services

Key facts

  • 15 kg checked baggage
  • 7 kg cabin baggage
  • Rs 26,700 crore loss FY26
  • 14.6 lakh seats cut June
  • SGD 3.56 billion

Why this matters

Air India's basic economy pilot signals competitive pressure on IndiGo's domestic stronghold and opens partnership or ancillary-revenue plays for catering, payments, and loyalty platforms.