Air India cuts 22% of domestic flights, IndiGo up to 10% as fuel costs climb

Air India and IndiGo have significantly reduced their planned domestic flight schedules for June and July as airlines respond to rising jet fuel prices following the Iran conflict, according to Reuters, citing sources familiar with the matter.

The report said Air India has reduced around 22% of its planned domestic flights during the period, while IndiGo has cut between 7% and 10% of its scheduled services.

Together, the two airlines account for about 90% of India's domestic passenger market, making the reductions one of the most significant capacity adjustments seen in recent months.

Higher fuel bills drive operational changes

According to Reuters, the reductions come as airlines face sharply higher operating costs after aviation fuel prices climbed following the conflict involving Iran.

Fuel is one of the largest expenses for airlines and can account for up to 40% of operating costs. The increase has forced carriers to review route economics, reduce less profitable services and manage capacity more carefully.

The flight reductions could also reduce seat availability on some domestic routes during the busy summer travel season, potentially keeping fares elevated.

Air India confirms temporary route rationalisation

While Reuters reported the scale of the capacity reductions through unnamed sources, Air India confirmed it has temporarily adjusted its domestic network.

In a statement, the airline said it had "temporarily rationalised operations on certain domestic routes" between June and August.

According to the airline, the changes have been made in response to the sustained impact of higher fuel prices on its operations.

Air India added it would continue monitoring demand and operating conditions and restore frequencies when conditions stabilise.

Passengers affected by the revised schedule will be offered:

• Alternative flights where available.
• Complimentary changes to travel dates.
• Full refunds.

IndiGo yet to comment

Reuters reported IndiGo did not immediately respond to its request for comment.

The airline operates more than 2,200 flights every day, including international services, making it India's largest airline by market share.

Before the latest domestic schedule adjustments, IndiGo had already reduced some long-haul international services, citing operational constraints and airport congestion.

Capacity cuts highlight wider industry pressures

The latest schedule reductions illustrate how geopolitical developments are affecting airline operations beyond conflict zones.

Air India's domestic adjustments follow earlier cuts to parts of its international network, which Reuters reported created opportunities for foreign airlines to expand services to and from India.

The report also noted Air India recently posted an annual loss of more than $2 billion, with higher fuel prices, Pakistan's continued closure of its airspace to Indian carriers and a stronger US dollar adding to operating pressures.

Although Indian airlines are expected to receive new aircraft over the coming years, the latest reductions highlight the sensitivity of airline operations to fuel price volatility and external geopolitical events.

With demand for domestic air travel remaining strong, airlines are expected to continue balancing network expansion with profitability until operating costs begin to stabilise.