India’s top airlines launch unbundled budget fares to counter rising airfares

IndiGo and Air India have introduced entry-level fare tiers that unbundle core services, slashing base prices by ₹300–700 to attract cost-conscious travelers amid four months of rising operating costs. IndiGo Lite, effective 15 July 2026, excludes check-in baggage and meals while retaining 7 kg cabin allowance and auto-assigned seats; Air India Basic, launched 16 June 2026, omits complimentary onboard meals but preserves 15 kg checked baggage and 7 kg cabin allowance. Both operators allow add-ons up to one hour before departure, signaling a sector-wide shift toward pay-per-use models that prioritize flexibility over bundled benefits for domestic and international non-stop routes.