Air India and IndiGo, India’s two largest airlines, have sharply cut their planned domestic flights from June 1, sources familiar with the matter said, as the industry grapples with a rise in jet fuel costs in the wake of the Iran war.
Air India has cut 22 per cent of its planned domestic flights, while IndiGo has cut around 7-10 per cent, the sources said, marking a significant pullback by the two carriers that together control around 90 per cent of India’s domestic air passenger market.
After reducing international flights, Air India has decided to scale down its local operations from June 1 for a period of three months.
Sources said IndiGo’s scale-down is part of a capacity adjustment amid an expected dip in travel demand during the July-September quarter, but denied any connection to the hike in aviation turbine fuel charges.
“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,” an Air India spokesperson said.
These adjustments are driven by the sustained impact of high fuel prices on overall operations, the airline said, assuring that it will keep reviewing passenger demand and operating conditions closely, with a view to restoring frequencies as conditions stabilise.
Travellers impacted by the revised schedule will be offered assistance, including alternative flight options, complimentary date changes or full refunds, as applicable.
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.