IndiGo and Air India Cut Domestic Flights as Fuel Costs Rise

IndiGo and Air India Cut Domestic Flights as Fuel Costs Rise

By Manu Vardhan Kannan

Published on June 1, 2026

India’s two largest airline groups, IndiGo and Air India, are set to reduce domestic flight operations during the June-August period as rising aviation fuel costs and a weaker rupee continue to put pressure on airline profitability.

According to aviation data analytics agency Cirium, Air India and its low-cost subsidiary Air India Express are expected to operate around 20 per cent fewer domestic flights during June and July. Meanwhile, IndiGo, the country’s largest airline by market share, is likely to reduce its domestic flight operations by 10 to 12 per cent during the same period.

The move comes as airlines face increasing operational expenses driven by elevated global jet fuel prices and currency-related cost pressures. Despite government support measures for the aviation sector, carriers continue to deal with higher input costs that are affecting route planning and capacity deployment.

The reduction in flights is expected to have a direct impact on airfares. Together, IndiGo and Air India account for more than 90 per cent of India’s domestic aviation market. With fewer seats available across several routes, travellers could see ticket prices rise during the peak travel season.

Industry observers note that airlines are balancing demand with profitability, adjusting capacity to manage costs while maintaining operational efficiency. The coming months will be closely watched as carriers respond to fuel price movements and changing market conditions.


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