Air India and IndiGo to Cut Domestic Flights as ATF Prices and Weak Demand Bite, Reports Say
Air India and IndiGo are preparing to reduce domestic flight operations from June 1, 2026, for the next 90 days, as airlines face a sharp rise in aviation turbine fuel (ATF) prices and weaker passenger demand after the summer travel season. According to reports, Air India may cut domestic capacity by around 15%, while IndiGo is expected to reduce flights by about 5% to 7%. The move could affect several major routes across India, including services linked to Mumbai, Delhi, Hyderabad and Bengaluru.
The decision comes at a time when airlines are under growing pressure from higher fuel costs and softer travel demand. Industry sources say ATF prices in several cities have climbed above ₹1 lakh per kilolitre, compared with about ₹80,000 earlier. Since fuel taxes and VAT rates vary from state to state, airlines are facing different cost burdens depending on the location, further squeezing margins on low-demand routes.
Mumbai and Delhi are expected to see the biggest changes, with possible reductions on routes such as Mumbai-Ahmedabad, Mumbai-Nagpur, Mumbai-Patna and Mumbai-Bhopal. From Delhi, flights to Hyderabad, Bengaluru and Kolkata may also be reduced. Some routes in southern India could be impacted as well, though airlines are not expected to shut down any route completely.
Airline officials have reportedly clarified that the network will not be closed on any route, but flight frequencies will be lowered to keep operations balanced and reduce losses. To avoid last-minute inconvenience for passengers, some flights have already been removed from booking platforms.
Experts say domestic air travel usually slows after school and college holidays end, prompting airlines to trim capacity every year. This time, however, the situation is more serious because of record-high fuel prices. Rising international fuel costs and tensions in West Asia have also added uncertainty to the aviation sector.
The impact is not limited to domestic routes. A slowdown in international operations is also affecting connecting traffic on Indian airlines. Earlier, many passengers used domestic flights to reach major hubs such as Delhi and Mumbai before boarding international services. With weaker international networks, the number of connecting domestic travelers may also fall.
Aviation experts warn that if ATF prices do not decline soon, ticket fares may rise further in the coming months, adding to the burden on passengers. For now, airlines are focusing on controlling costs and keeping their route networks stable amid challenging market conditions.
