Air India has rolled out a new 'Basic Fare' structure for economy class on several domestic routes, unbundling complimentary meals in a strategic move to offer more competitive airfares. This new option, introduced on June 17, 2026, targets price-conscious travelers and is expected to reduce ticket costs by approximately ₹500-600 per passenger.
The introduction of the Basic Fare comes as Air India faces substantial financial challenges, reporting losses of ₹28,000 crore in FY26. By segmenting services, the airline aims to streamline operations and enhance its market position amidst rising competition and increasing jet fuel costs.
Key Details of the Basic Fare
The Basic Fare is specifically designed for short-duration flights, typically within 1 to 1.5 hours of travel time. Initial routes where this fare will be available include high-traffic segments such as Delhi-Chandigarh, Delhi-Amritsar, and Hyderabad-Bengaluru. These routes were chosen based on the likelihood that passengers on shorter journeys might not prioritize in-flight meals.
What's Included and Excluded?
- Included: Passengers opting for the Basic Fare will still receive a 15 kg checked baggage allowance and a 7 kg cabin baggage allowance. Complimentary beverage service, including tea or coffee, is also provided.
- Excluded: Complimentary meals are not part of the Basic Fare. However, travelers have the option to pre-book meals up to 24 hours before their scheduled departure if they wish to have them.
This new fare category complements Air India’s existing branded fare families—Value, Classic, and Flex—which were introduced in 2024. The airline's strategy is to provide a range of choices that align with diverse traveler preferences, allowing guests to pay only for the services they deem necessary.
By enabling price-conscious travelers to customize their experience, Air India aims to maintain its full-service offerings for those who prefer an all-inclusive journey, while also catering to a segment seeking more affordable travel options.