More than 70 Torbay roads were to be closed or restricted to comply with new measures introduced after the Shoreham air disaster that killed 11 people.
Torbay Council has now dropped restrictions on 16 roads, saying the parking situation is "flexible".
The restrictions will apply during the three-day air show starting on Friday.
Live updates on this story
About 50,000 people are expected at the show, the first of its kind in Torbay after annual performances by the Red Arrows.
Some residents said the closures were excessive and a money-making ploy by Torbay Council.
The council rejected the claim and said it had to keep roads clear for emergency vehicles, a move prompted by the 2015 Shoreham disaster.
It said "following a review" the restrictions had been lifted.
"The parking situation during the period of the forthcoming Torbay air show is flexible and is being constantly reviewed, with a view to releasing areas of on street parking where felt appropriate," said a spokesman.
"We will monitor the situation throughout Saturday, in the hope that we do not need to reinstate the restrictions for Sunday."
Sweeping parking restrictions have been dropped at a seaside air show after criticism of "over the top" council curbs.