Air India's new low-cost move: Pay less, but skip the complimentary meal

Air India on Tuesday announced a new basic fare category for select domestic flights under which passengers will not get complimentary meals, as the full-service carrier looks to trim expenses amid rising operational costs. The airline said the fare has been introduced on a pilot basis and is entirely optional, with passengers continuing to have the option of choosing from the value, classic and flex fare categories that include complimentary meals.

The move marks at least the first time since Air India’s privatisation in January 2022 that the airline has introduced a fare category without complimentary meals for passengers. The carrier said the new option is aimed at price-conscious travellers who prefer a more unbundled offering, even as it retains full-service options for those who want an all-inclusive experience.

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In a statement on Tuesday, the airline said, "Being trialled on select domestic routes, the Basic fare is available for travel in Economy Class and is designed for travellers who prioritise value. It includes a 15 kg checked baggage allowance, 7 kg cabin baggage allowance, complimentary beverage service (tea/coffee), while complimentary meals are not included," the airline said in a statement. A decision on whether to continue with the basic fare option will be taken after assessing customer response and feedback during the pilot phase.

Air India said the three fare categories of value, classic and flex, which include complimentary meals, were introduced in 2024 and come with a range of bundled benefits at progressively higher price points. The airline said the introduction of the basic fare simply adds another layer of choice. Generally, complimentary meals onboard are part of the fares offered by full-service carriers, while low-cost airlines levy an additional charge for in-flight meals.

The airline’s operational costs have been under pressure from airspace closures and higher fuel costs. Against this backdrop, the carrier, which was acquired by the Tata Group over four years ago, has undertaken various cost-saving measures, including a temporary reduction in flights. Officials said the basic fare option is part of these cost-cutting efforts.

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Passengers opting for the basic fare will have the flexibility to pre-purchase meals up to 24 hours before departure, with options including vegetarian, non-vegetarian, Jain and diabetic meals. In the event of a schedule change or reaccommodation, pre-purchased meals will be automatically transferred to the new flight, or fully refunded if unavailable for any reason, the statement said. Air India added, "By unbundling certain services, Air India is enabling price-conscious travellers to pay only for what they need, while preserving full-service offerings for those who value an all-inclusive experience," it added.

The announcement comes at a time when Air India’s loss stood at more than SGD 3.56 billion, or over Rs 26,700 crore, in the financial year ended March 2026, as the carrier grappled with the fallout of airspace curbs and other headwinds. The figures were disclosed by Singapore Airlines Group in its annual financial report for 2025-26, released on May 14. Singapore Airlines Group’s net profit fell 57 per cent to SGD 1.184 billion, or nearly Rs 8,900 crore, in the fiscal ended March 2026, mainly due to the absence of a prior-year one-off accounting gain related to the Vistara merger, and Air India losses.