Fuel Costs Hit Hard: Air India, IndiGo Cut Domestic Flights

India’s aviation sector is entering a turbulent phase as major carriers, including Air India , IndiGo , and Air India Express , have begun scaling back domestic flight operations amid rising fuel costs and softer passenger demand. The temporary reduction in services, expected over the coming months, reflects the growing pressure on airlines battling an increasingly expensive operating environment.

According to officials, the sharp rise in aviation turbine fuel (ATF) prices following the ongoing West Asia conflict has significantly increased operational costs for airlines. Alongside this, relatively weaker travel demand during the off season has pushed carriers to rationalise routes and frequencies across the country.

Among the major airlines, Air India is expected to reduce nearly 20 to 22 per cent of its domestic flights during June and July. With the airline operating around 3,600 domestic flights every week , the reduction could impact more than 790 weekly services . The Tata Group owned airline stated that the move is temporary and aimed at managing the sustained impact of high fuel prices.

The airline also assured passengers that those affected by schedule changes would receive assistance through alternative bookings, complimentary date changes, or full refunds wherever applicable.

Budget carrier IndiGo , India’s largest airline by market share, is also planning to trim 12 to 15 per cent of its domestic services during the September quarter. Officials indicated that the airline is adjusting capacity in response to slower demand trends and seasonal travel patterns, a practice commonly seen between mid June and August.

Meanwhile, Air India Express has announced a reduction of less than 10 per cent in domestic frequencies for June. The airline said it is recalibrating operations to optimise capacity while continuing to expand connectivity in the West Asia region , where services are gradually being restored after earlier disruptions.

The development comes at a challenging time for the aviation industry, which is simultaneously facing higher fuel expenses , restricted airspace in certain international corridors, and uncertain travel demand. Earlier this month, Air India had also announced cuts to several international routes, including flights to Chicago, Newark, and Shanghai .

Industry experts believe airlines are likely to continue reviewing their schedules closely in the coming weeks as geopolitical tensions and fuel prices remain volatile. While the current reductions are being described as temporary, passengers may witness fewer flight options and fluctuating fares during the busy summer travel period.