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Air India and IndiGo have reduced planned domestic flight operations for the coming months as rising aviation turbine fuel prices and operational disruptions increase cost pressures on airlines. Air India has cut domestic capacity by around 22% for June and July, while IndiGo has scaled back portions of its planned schedule for the summer quarter. The reductions follow a sharp increase in fuel prices linked to geopolitical tensions in West Asia and airspace restrictions affecting airline operations. Industry officials said the cuts could lead to tighter seat availability and higher domestic airfares during the peak travel season.
India’s two largest airlines, Air India and IndiGo, have reduced planned domestic flight operations for the upcoming months as escalating jet fuel prices and broader operational disruptions place increasing financial pressure on the aviation sector. The capacity reductions come amid rising aviation turbine fuel (ATF) costs linked to geopolitical tensions in West Asia and continuing airspace restrictions affecting flight operations. Advertisement
According to industry sources, Air India has reduced around 20% to 22% of its planned domestic operations for June and July, while IndiGo has cut back approximately 7% to 15% of planned domestic services for the summer quarter. Officials indicated that the rationalisation measures were primarily driven by surging fuel costs and weaker-than-expected seasonal demand on select routes.
Air India stated that it had temporarily rationalised frequencies on select domestic routes through August while continuing to monitor operating conditions and passenger demand. The airline said affected passengers would be offered alternative flights, rescheduling options or refunds where applicable. The carrier had earlier announced reductions in several international routes due to airspace restrictions and elevated operating costs.
Officials stated that Air India currently operates around 4,400 weekly services, including nearly 3,600 domestic flights. A 22% reduction would translate into a cut of more than 790 weekly domestic services during the affected period. IndiGo, which operates more than 15,000 weekly flights including approximately 13,000 domestic services, has also recalibrated portions of its domestic network for the coming months.
The aviation sector has faced mounting cost pressures following a sharp rise in global fuel prices after escalating tensions involving Iran and disruptions in West Asian air corridors. Fuel expenses account for up to 40% of airline operating costs, making sustained price increases particularly difficult for carriers operating high-frequency domestic networks. Airlines have also been affected by longer rerouting requirements and restrictions on certain international airspaces, increasing operational expenditure further.
Air India Express has also adjusted domestic operations, reducing frequencies by less than 10% while continuing gradual restoration of services to West Asia. The airline stated that it was adopting a calibrated approach to align capacity with changing demand patterns and network conditions. Officials said the carrier currently operates around 3,000 weekly flights, including nearly 2,400 domestic services.
Industry analysts indicated that reduced seat capacity during the summer travel season could place upward pressure on domestic airfares across major routes. The scaling back of operations comes at a time when airlines are also contending with currency volatility, elevated maintenance expenditure and supply chain constraints affecting aircraft availability.
The developments highlight the continued vulnerability of the aviation industry to geopolitical disruptions and fuel price volatility despite sustained long-term growth projections for India’s domestic air travel market.
Source - Reuters
5th Jun, 2025
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