New Delhi: India’s aviation sector is set to witness a significant reduction in domestic flight capacity as Air India, Air India Express, and IndiGo collectively withdraw around 250 daily flights from June onwards. The move comes against the backdrop of soaring aviation turbine fuel (ATF) prices and weakening passenger demand, developments that are expected to push airfares even higher across major domestic routes.
The three airlines, which together account for nearly 90% of India’s domestic aviation market, are scaling back operations during what is traditionally considered a lean travel period. Travel demand typically softens after the summer holiday season ends in mid-June, and airlines are now adjusting their schedules to cope with lower passenger bookings and rising operational expenses.
Air India announced that it will reduce nearly 22% of its domestic schedule during June and July. The airline currently operates around 3,600 weekly domestic flights, averaging close to 500 flights per day. The reduction is expected to result in the withdrawal of approximately 110 daily services.
In a statement, Air India said the decision was driven by the “sustained impact of high fuel prices on overall operations” and added that the airline would continue monitoring market conditions and demand trends closely.
IndiGo, India’s largest airline by market share, will also trim domestic capacity by around 5%. With nearly 2,200 daily flights currently in operation, the reduction translates to roughly 110 fewer flights each day. Sources within the airline indicated that softer travel demand and reduced discretionary spending by consumers were key factors behind the decision.
Meanwhile, Air India Express will reduce close to 10% of its domestic operations, affecting nearly 340 daily flights on various routes.
The capacity cuts come at a time when aviation fuel prices have surged sharply due to escalating geopolitical tensions in West Asia. Domestic ATF prices have risen by nearly 25%, while fuel costs for international operations have reportedly doubled in some sectors. The increase has significantly impacted airline operating costs, forcing carriers to raise ticket prices by 40–50% on several routes. Airlines have also introduced fuel surcharges ranging between Rs 400 and Rs 450 per ticket.
Industry experts believe the latest reduction in flight availability could tighten seat supply further and give airlines greater flexibility to maintain or increase fares in the coming weeks.
At the same time, airlines are gradually restoring operations on West Asia routes as regional airspace restrictions ease. Air India Express stated that it now operates around 500 weekly flights between India and West Asia, up from nearly 280 flights a few weeks earlier, with services resumed across 11 regional airports.
