Air India, IndiGo To Cut Domestic Flights From June 1 As High ATF Prices, Low Demand Raise Operational Costs

Air India, IndiGo To Cut Domestic Flights From June 1 As High ATF Prices, Low Demand Raise Operational Costs

After cutting down on international flights, Indian aviation companies have now scaled back domestic flights as well. Air India and IndiGo are set to cut domestic operations starting June 1 for a period of 90 days

Rakshit KumarUpdated: Wednesday, May 27, 2026, 12:07 PM IST
Air India, IndiGo To Cut Domestic Flights From June 1 As High ATF Prices, Low Demand Raise Operational Costs

After cutting down on international flights, Indian aviation companies have now scaled back domestic flights as well.

Air India and IndiGo are set to cut domestic operations starting from June 1 for a period of 90 days (until August), according to a report by The New Indian Express.

While Air India has reduced 15 percent of its domestic flights from June 1, IndiGo is planning to cut 5-7 percent of its domestic operations.

The reductions are a result of rising jet fuel prices due to the supply crunch amid the West Asia conflict.

Air India operates about 3,800 flights per week. The cost of aviation turbine fuel has surged past the Rs 1 lakh per kilolitre mark, which earlier stood at around Rs 80,000 per kilolitre.

Hence, it is becoming financially unviable for the airline to operate when prices remain elevated, according to a source cited in the report.

Aviation turbine fuel contributes around 40-60 percent of an airline’s total operational cost.

Air India may not withdraw all flights on a route, but the frequency will be reduced.

The company said it will continue to monitor the situation on the demand and operations side. The original flight frequency on the affected routes will be restored as conditions stabilise, it added.

The routes expected to be affected include services from Mumbai to Ahmedabad, Nagpur, Patna, and Bhopal. From Delhi Airport, the number of flights to Hyderabad, Bengaluru, and Kolkata will also be reduced, the report said.

Reduction in international flights by Air India is another reason behind the reduced frequency from Delhi and Mumbai.

As international flights reduce, passengers taking domestic connecting flights to the two airports will also decline.

For IndiGo, the decision to reduce domestic flights on certain routes was prompted by the end of the academic vacation period, after which occupancy levels decline.

The company will cut 5-7 percent of its 1,950 daily flights from June 1, the report said.

IndiGo is the largest player in the Indian aviation sector, with a market share of over 60 percent. Air India is the second-largest Indian airline operator.