Mumbai: IndiGo Cuts Domestic Flights After Air India, Fares Likely to Rise

Domestic air travellers in India are likely to face a difficult three-month period as airlines cut flight operations amid rising operational expenses and higher aviation fuel prices. 

After Air India, IndiGo has also decided to reduce its domestic flight capacity by 5 to 7 per cent between June and August, a move expected to drive up ticket fares on several routes.

IndiGo currently operates nearly 2,200 flights daily, and around 110 domestic flights are expected to be withdrawn on average each day during the period. The reduction in capacity is likely to result in fewer available seats and increased airfare prices across the domestic aviation sector.

The aviation industry has come under pressure following the spike in jet fuel prices triggered by the ongoing Iran-US conflict. Against this backdrop, Air India has already announced a 22 per cent reduction in domestic services for the next three months. IndiGo has now followed suit by scaling back operations on several routes. Although passenger demand typically declines during the monsoon season after the summer travel rush, the burden of higher fuel costs has intensified the pressure on airlines this year.

Jet fuel remains one of the biggest expenses for airlines, accounting for nearly a quarter of total operational costs. As a result, carriers have been forced to revise route planning and cut frequencies. IndiGo has reduced domestic services from major cities including Bengaluru, Hyderabad, Chennai and Kolkata, with an estimated 10 to 15 daily flights from each airport likely to be affected. Industry experts say the lower number of flights could lead to higher ticket prices due to reduced seat availability.

As part of temporary schedule adjustments aimed at managing increasing operational costs, IndiGo has already reduced its international capacity by nearly 17 per cent. The airline is reportedly diverting focus from domestic operations to expansion on West Asian and other international routes.

The impact is expected to affect a large section of air travellers in the country. Air India’s 22 per cent reduction alone could result in over 750 fewer flights, while Air India Express is expected to cut nearly 10 per cent of its 340 daily domestic operations. Combined with IndiGo’s reduction of around 110 flights a day, the three airlines together account for nearly 90 per cent of India’s domestic aviation market, meaning nine out of every 10 air travellers are likely to feel the impact.

Typically, airlines reduce domestic flight capacity by around 10 per cent during the July-September monsoon period due to lower passenger demand. However, industry observers note that this year’s reduction is significantly higher than usual because of the sustained increase in fuel prices and economic pressures on the aviation sector.