Air India and IndiGo are set to cut domestic operations starting June 1 for a period of 90 days as airlines grapple with sharp rise in Aviation Turbine Fuel (ATF) prices and low summer demand, The New Indian Express reported on Wednesday, citing multiple sources.
The two carriers, which control more than 90 per cent of the Indian aviation market have decided to scale down operations since the industry is facing a number of issues following the outbreak of the US-Iran war, along with the seasonal slump after the school holiday period.
As per the report, Air India will reduce up to 15% of its domestic operations, while IndiGo plans to cut between 5% and 7% of its services.
“We operate an average of 3,800 flights per week. The ATF cost for our domestic flights used to be Rs 80,000 per kilolitre. It has now risen to more than Rs 1 lakh, depending on the city, as VAT imposed by state governments varies. It would not be financially viable to operate when ATF prices are this high," a senior source at Air India told the publication.
The source added, “We will not withdraw any route entirely, but we will reduce the number of flights operated on specific sectors. There is a long list of services that we plan to scale down.”
Air India later confirmed the development on rationising operations on certain domestic routes between June and August.
"In continuation of our previously announced adjustments to select international services between June and August 2026, we have temporarily rationalised operations on certain domestic routes during the same period, with a reduction in frequencies on select routes," Air India spokesperson said.
The spokesperson noted that the adjustments are driven by the sustained impact of high fuel prices on overall operations. "The airline will continue to monitor demand and operating conditions closely, with a view to restoring frequencies as conditions stabilise. Passengers impacted by these changes will be proactively assisted with re-accommodation on alternative flights, complimentary date changes, or full refunds, as applicable," it added.
Services from Mumbai to Ahmedabad, Nagpur, Patna and Bhopal are among the ones likely to be reduced. From the Delhi Airport, the number of flights to Hyderabad, Bengaluru and Kolkata will also be cut, the source said.
“While a major portion of the reductions will be from Mumbai and Delhi airports, the southern region will also be affected, as return flights on these sectors will likewise be cancelled,” the source said.
The report cited scaling back of international operations as another reason behind the flight reduction. The sources cited above said that the number of passengers taking domestic connecting flights to hubs such as Delhi and Mumbai is also expected to decline with the international network currently reduced, and "anticipated lower demand is another factor".
“We will not operate these flights from June 1 until the end of August. The flights have already been removed from the website to prevent passengers from booking them,” the source added.
Meanwhile, India's largest airline IndiGo is said to reduce between 5% and 7% of its domestic operations.
“Historically, the months following the academic vacation period witness lower occupancy levels. Due to the expected fall in demand, we will scale down operations from June 1. IndiGo operates 1,950 flights daily, so even a small percentage cut translates into a significant number of cancellations,” an airline source said.
The Tata Group-owned carrier had recently announced a reduction in its international flight operations between June and August as well. Citing continued airspace restrictions over certain regions and record high jet fuel prices for international operations, the airline said that the changes are aimed at improving network stability and reducing last-minute inconvenience to passengers.
