India, May 27 -- Air India, the country's only full-service carrier, will reduce its domestic flights by around 22% starting next month, the airline announced on Wednesday, days after reducing 27% of its international flights to mitigate the impact of high fuel prices on overall operations.

The flight cuts come against the backdrop of the US-Israeli attack on Iran, which drove a surge in jet fuel prices and forced airlines to increase fares and reduce flights. Airlines spend up to a quarter of their operating expenses on fuel. Air India, which this month reported an annual record loss of over $2 billion in the 2025-26 fiscal year, has also struggled with the ban preventing Indian carriers from using Pakistan's airspace.

On Wednesday, Ai...