Key Highlights
- Air India, IndiGo and Air India Express cutting over 250 daily flights
- Rising ATF prices driving operational cost pressures
- Domestic airfares expected to increase further
- Airlines witnessing softer travel demand after summer season
- Capacity cuts mainly planned for June and July
- West Asia route operations gradually being restored
New Delhi: India’s aviation sector is witnessing a major capacity reduction as Air India, Air India Express and IndiGo together cut more than 250 daily domestic flights amid soaring aviation fuel prices and weakening travel demand.
The move comes at a time when airlines are already struggling with sharply rising operational costs triggered by the ongoing Middle East tensions and higher crude oil prices. Industry experts believe the reduction in flights could push airfares even higher across several major domestic routes in the coming weeks.
Air India has announced a 22% reduction in its domestic schedule during June and July, translating into over 100 daily flights being removed from operations. IndiGo is also trimming around 5% of its domestic capacity, while Air India Express plans to reduce nearly 10% of its flights.
The combined impact is expected to tighten seat availability significantly, especially during peak travel periods and on high-demand business routes.
Aviation turbine fuel (ATF) prices have reportedly surged sharply in recent weeks due to geopolitical tensions in West Asia and rising crude oil prices globally. Airlines have already increased fuel surcharges and airfares on multiple sectors to offset mounting expenses.
Alongside rising costs, airlines are also seeing softer demand after the summer vacation season. Travel sentiment has weakened as higher ticket prices and economic uncertainty prompt many passengers to reduce discretionary spending.
Despite the domestic cuts, airlines have gradually started restoring some international and West Asia services as airspace restrictions ease in parts of the region.
Industry analysts say airlines may continue adjusting capacity depending on fuel prices, passenger demand and geopolitical developments over the next few months.
