.png){kind=logo}
India's two largest airlines, Air India and IndiGo, are preparing to reduce domestic flight operations for three months beginning June 1 as rising fuel costs and weaker passenger demand create pressure on airline operations.
The move comes at a time when the aviation sector is facing a challenging environment driven by higher aviation turbine fuel (ATF) prices, seasonal demand changes, and global disruptions affecting the industry. Together, the two airlines account for more than 90% of India's domestic aviation market, making the operational adjustments significant for travelers and the broader sector.
According to reports, Air India plans to reduce up to 15% of its domestic operations, while IndiGo is expected to scale back between 5% and 7% of its services. Air India later confirmed that it has decided to temporarily adjust services on selected domestic routes between June and August.
Air India spokesperson said, "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".
The airline said the decision is linked to continued pressure from high fuel costs and changing operating conditions. The spokesperson added, "The airline will continue to monitor demand and operating conditions closely, with a view to restoring frequencies as conditions stabilise. Passengers impacted by these changes will be proactively assisted with re-accommodation on alternative flights, complimentary date changes, or full refunds, as applicable".
Industry sources indicated that aviation fuel prices have risen sharply in recent weeks, creating financial pressure for carriers. One source said the fuel cost for domestic operations, which was earlier around Rs 80,000 per kilolitre, has now crossed Rs 1 lakh in several cities due to varying tax structures.
Airlines generally treat fuel as one of their largest operating expenses, making price fluctuations a major factor in network planning. Sources also said that Air India does not plan to remove routes completely but will reduce the number of flights on selected sectors.
Routes from Mumbai to cities including Ahmedabad, Nagpur, Patna, and Bhopal are among those expected to see lower frequencies. Services from Delhi to Hyderabad, Bengaluru, and Kolkata could also witness reductions. The report also linked the cuts to softer demand following the end of the school vacation season. Historically, airlines often experience lower occupancy levels during this period. Also Read: Top 10 Visa Free International Summer Trips for Indian Passport Holders
IndiGo sources reportedly indicated that even a small reduction in operations can result in a large number of flight cancellations because of the airline's extensive network and high daily flight count. Another factor affecting domestic travel is the recent reduction in international operations, which could reduce connecting passenger traffic through major hubs such as Delhi and Mumbai.
Airlines have reportedly already removed several affected flights from booking systems to avoid passenger inconvenience and last-minute disruptions. The temporary adjustments highlight the balancing act airlines face between managing operational costs and maintaining network stability in a rapidly changing market.
