NEW DELHI: IndiGo and Air India, India’s two largest airlines, have sharply cut their planned domestic flights for June and July, sources familiar with the matter said, as the industry grapples with a rise in jet fuel costs in the wake of the Iran war.
IndiGo has cut around 7 per cent to 10 per cent of its planned domestic flights for the period, while Air India has cut 22 per cent, the sources said.
This marks a significant pullback by the two carriers that together control around 90 per cent of India’s domestic air passenger market.
The sources declined to be named as they were not authorised to share the information.
The cuts could tighten seat availability on some domestic routes and keep fares elevated during the busy summer travel period, even as airlines try to avoid flying loss-making services.
The Iran war-driven surge in jet fuel prices has blindsided the aviation industry. Fuel can account for up to 40 per cent of airlines’ operating expenses, forcing them to raise fares and cut unprofitable flights.
Air India said in a statement on May 27 that it had “temporarily rationalised operations on certain domestic routes” between June and August.
“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,” a spokesperson for the airline added.
Passengers affected by the changes would be offered places on alternative flights, complimentary date changes or full refunds, the spokesperson added.
IndiGo did not immediately respond to an e-mailed request for comment. The airline operates more than 2,200 daily flights, including international ones.
Air India’s cuts follow reductions to its international routes, which have created room for foreign airlines to add more flights to and from India.
IndiGo had cut some long-haul flights prior to the war, citing operational constraints and airport congestion.
The reductions also underscore the vulnerability of India’s fast-growing aviation market to external shocks, even as carriers are set to receive new jets in the coming years.
Air India recently logged a record annual loss of more than US$2 billion, also battered by Pakistan’s ban on Indian carriers from its airspace and a strong US dollar.
The airline is owned by the Tata Group and Singapore Airlines.
Air India announced earlier in May that it was suspending routes to Chicago, Shanghai, Male and Singapore from Indian cities including New Delhi, Mumbai and Chennai between June and August.
It also announced a cut in the frequency of flights to San Francisco, Paris, Milan and Sydney.
Since taking over Air India in 2022, the Tata conglomerate has embarked on an ambitious overhaul, ordering hundreds of aircraft and upgrading its ageing fleet.
The Middle East war has proven to be the latest in a series of setbacks.
The biggest blow to the airline’s image came in June 2025, when Air India Flight 171 – a London-bound Boeing 787‑8 Dreamliner – crashed shortly after take‑off from Ahmedabad, killing all but one of the 242 people on board and 19 people on the ground. - AFP, Reuters
