Google News (Airlines) · 9 Jun 2026
Air India is piloting meal-opt-out 'lite fares' on short domestic routes including Delhi–Amritsar, Delhi–Chandigarh, and Bengaluru segments, with potential base fare savings of up to ₹250 per passenger. The move is driven by fuel cost pressure and a domestic market share that has slipped below 25% against IndiGo's near-65% dominance — and mirrors unbundling already executed by Air India Express and now extending to the full-service mainline brand.
Industry lens
OTAs distributing Air India inventory must audit ancillary display logic for meal opt-out fare accuracy before the pilot scales — platforms that surface bundled fares as the base price will show artificially inflated fares against direct booking, accelerating price-sensitive traffic migration to airline direct channels.
“As of June 2026, Air India's domestic market share has faced downward pressure, dipping below the 25% threshold, while arch-rival IndiGo continues to solidify its dominance with a market share nearing 65%.”
— Google News (Airlines)