Air India’s new low cost move: Pay less, but skip the complimentary meal – BusinessToday

Air India on Tuesday introduced a new primary fare class for choose home flights below which passengers is not going to get complimentary meals, as the full-service provider seems to trim bills amid rising operational prices. The airline mentioned the fare has been launched on a pilot foundation and is solely optionally available, with passengers persevering with to have the choice of selecting from the worth, traditional and flex fare classes that embrace complimentary meals.

The transfer marks a minimum of the first time since Air India’s privatisation in January 2022 that the airline has launched a fare class with out complimentary meals for passengers. The provider mentioned the new choice is aimed toward value-acutely aware travellers preferring a extra unbundled providing, even because it retains full-service choices for many who need an all-inclusive expertise.

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In a press release on Tuesday, the airline mentioned, “Being trialled on choose home routes, the Primary fare is on the market for journey in Financial system Class and is designed for travellers who prioritise worth. It features a 15 kg checked baggage allowance, 7 kg cabin baggage allowance, complimentary beverage service (tea/espresso), whereas complimentary meals are usually not included,” the airline mentioned in a press release. A call on whether or not to proceed with the primary fare choice will likely be taken after assessing buyer response and suggestions throughout the pilot section.

Air India mentioned the three fare classes of worth, traditional and flex, which embrace complimentary meals, have been launched in 2024 and include a spread of bundled advantages at progressively larger value factors. The airline mentioned the introduction of the primary fare merely provides one other layer of alternative. Typically, complimentary meals onboard are a part of the fares provided by full-service carriers, whereas low-cost airways levy an extra cost for in-flight meals.

The airline’s operational prices have been below strain from airspace closures and better gasoline prices. Towards this backdrop, the provider, which was acquired by the Tata Group over 4 years in the past, has undertaken numerous cost-saving measures, together with a short lived discount in flights. Officers mentioned the primary fare choice is a part of these cost-cutting efforts.

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Passengers choosing the primary fare may have the flexibility to pre-buy meals as much as 24 hours earlier than departure, with choices together with vegetarian, non-vegetarian, Jain and diabetic meals. In the occasion of a schedule change or reaccommodation, pre-bought meals will likely be mechanically transferred to the new flight, or absolutely refunded if unavailable for any motive, the assertion mentioned. Air India added, “By unbundling sure providers, Air India is enabling value-acutely aware travellers to pay just for what they want, whereas preserving full-service choices for many who worth an all-inclusive expertise,” it added.

The announcement comes at a time when Air India’s loss stood at greater than SGD 3.56 billion, or over Rs 26,700 crore, in the monetary 12 months ended March 2026, as the provider grappled with the fallout of airspace curbs and different headwinds. The figures have been disclosed by Singapore Airways Group in its annual monetary report for 2025-26, launched on Could 14. Singapore Airways Group’s web revenue fell 57 per cent to SGD 1.184 billion, or almost Rs 8,900 crore, in the fiscal ended March 2026, primarily resulting from the absence of a previous-12 months one-off accounting acquire associated to the Vistara merger, and Air India losses.