Air India, like many other airlines globally, is suffering from the impact of the Middle Eastern crisis, which has driven up oil prices. There has been some protection for domestic airlines against fuel price fluctuations, but for international flights, fuel prices doubled overnight as of April 1, 2026. But the tolerance is thin now, and patience is wearing thin for running an unprofitable operation on the international segments as well.
Air India is considering making domestic economy meals “optional”
Air India is considering introducing a new “lite” fare, reports The Times of India. The Economy Class “Lite Fare” may mean meals are omitted for customers who choose this fare. This should reduce the bill for the company and the customer by 200-300 INR per ticket. This will be a full round back to Vistara’s Lite Fares of 2018, where Lite Fare customers were seated at the back and not served meals, while the rest of the plane was. The move is anticipated to be live within a couple of months and would apply to domestic and regional flights on 2-3 long-haul routes. Whether this will go live or be dead before arrival remains to be seen.
Air India is also considering cutting the lounge access
Another move the airline is considering is allowing people to forgo lounge access in exchange for cheaper business-class tickets. While the article does not fully flesh out how, it does indicate the impact. As I’ve indicated earlier, metro third-party lounges cost about INR 1500 per trip, while non-metro lounges cost about INR 700. Again, will this impact only Business Class customers who can select a “Lite” Fare, or will it also affect their Gold and Platinum Tier customers? That remains to be seen. The last such thing happened when Jet Airways ran out of cash and limited Lounge Access.
There are also other ways that Air India is apparently discussing to reduce costs inside the organisation.
Bottomline
Air India is considering product cutbacks, as per The Times of India. Moves include cutting meal service in Economy Class and offering Lounge Access to Business Class customers in exchange for lower ticket prices, according to reports. These moves will, no doubt, be unpopular but will save the airline a pretty penny (and the customer, depending on how they are implemented).
What do you think of the moves by Air India to cut back on meals and lounges for customers?
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This won’t be temporary. Once they go down this route, it’ll be forever. The war is an excuse.
Without chopping meals for the whole cabin, you just know that your gonna get viral social media videos of someone with a light ticket not understanding what it is and unleashing their inner DYKWIA on crew.
Vistara has already tried and failed.
Not just Vistara, even Jet tried it with Jitelite. It just dilutes the brand and confuses the pax. I don’t know how much of an impact it will have on the numbers.