Air India and IndiGo are likely to slash domestic operations as fuel costs costs surge from June 1. This move is set to take place for 3 months as airlines are facing a sharp spike in the price of Aviation Turbine Fuel as well as low summer demand according to sources and people familiar with the matter.
Air India and IndiGo control over 90% of the domestic aviation market and their decision to scale down operations as the economy is facing multiple issues that are taking place due to the West Asia conflict is significant.
Services from Mumbai to Ahmedabad, Nagpur, Patna and Bhopal are likely to be reduced among others. From the Delhi Airport, the number of flights to Hyderabad, Bengaluru and Kolkata are also likely to be cut.
As per sources, Air India is reducing its domestic operations up to 15% and an Air India's spokesperson has stated, "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. These adjustments are driven by the sustained impact of high fuel prices on overall operations. Air India 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."
Aviation consultant and expert, Parvez Damania told Timesnownews.com “this is truly sad news for India’s aviation sector and, more importantly, for the common traveler. When airlines like Air India and IndiGo — which together control over 90% of the domestic market — slash their flight operations, an inevitable surge in ticket pricing is bound to follow. With fewer seats available and soaring fuel costs being passed down, it’s the ordinary consumer who will face the brunt of this decision. Families planning vacations, students traveling home, and professionals commuting for work will all end up paying significantly more, choking affordability in a sector that was finally becoming more accessible.”
Captain Amit Singh, Founder, Safety Matters Foundation told Timesnownews.com "when airlines cite fuel costs as a reason to shift capacity away from domestic routes, it is not an excuse, it is a symptom of a structural policy failure. ATF for domestic operations carries a full excise and VAT burden with no input tax credit, while international operations are effectively zero-rated on fuel. Until India brings ATF under GST, it is incentivising its own carriers to fly foreigners rather than Indians."
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