Air India and IndiGo which together control more than 90 per cent of the domestic aviation market, have decided to scale down their domestic operations from June 1 for a period of three months.
Air India will reduce up to 22 per cent of its domestic flights amid rising operational costs due to high fuel prices, according to PTI report.
Air India operates around 4,400 weekly flights. Out of them, about 3,600 are domestic and 800 are international services.
The loss-making airline, which has already reduced flights on certain routes, said the latest announced rationalisation of services will be in place during the June-August period.
"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," Air India said in a statement on Wednesday.
PTI reported 20-22 per cent of the domestic flights would be reduced.
"Air India will continue to monitor demand and operating conditions closely, with a view to restoring frequencies as conditions stabilise," it said in the statement.
Among the flights likely to be reduced are services from Mumbai to Ahmedabad, Nagpur, Patna and Bhopal. From Delhi, the number of flights to Hyderabad, Bengaluru and Kolkata will also be cut.
The carrier also said that passengers impacted by these changes will be proactively assisted with re-accommodation on alternative flights, complimentary date changes, or full refunds, as applicable.
Earlier this month, Air India announced reduction of international flights and temporary suspension of services on six routes, including Delhi-Chicago, amid airspace curbs and high jet fuel prices.
The airline will be temporarily suspending services on Delhi-Chicago, Mumbai-New York, Delhi-Shanghai, Chennai-Singapore, Mumbai-Dhaka, and Delhi-Male routes till August.
IndiGo, meanwhile, said it would reduce between 5 per cent and 7 per cent of its domestic operations, reported The New Indian Express on Wednesday.
“Historically, the months following the academic vacation period witness lower occupancy levels. Due to the expected fall in demand, we will scale down operations from June 1. IndiGo operates 1,950 flights daily, so even a small percentage cut translates into a significant number of cancellations,” an airline source said.
While Delhi has reduced VAT for a six-month period, the Maharashtra government last week reduced VAT on ATF from 18 per cent to 7 per cent until November 14.
To support the struggling aviation industry, the Central government on April 1, 2026 capped any increase in ATF prices for domestic operators at 25 per cent to cushion the impact of global instability. It also reduced parking fees and introduced an Emergency Credit Scheme for airlines.