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.

— Filed Wed, 17 Jun, 2026, 00:11 IST · Source Business Today · Latest · Updated

Air India launches a basic economy fare on select domestic routes without complimentary meals, targeting price-conscious flyers. Pilot move unbundles services as Tata-owned carrier cuts costs amid Rs 26,700 crore FY26 loss and airspace closures.

Why this matters

Signals a low-cost pivot for the full-service carrier after a Rs 26,700 crore FY26 loss, June seat cuts of 14.6 lakh, and a Tata directive to defer up to 500 jet deliveries and trim routes.

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