IndiGo, Air India Cut Domestic Flights Amid Jet Fuel Price Hike

Added: 2026-06-02

[00:00:01]IndiGo and Air India joined other airlines grappling with jet fuel price hikes linked to the Iran war. Sources told Reuters India's two largest carriers have sharply cut their planned domestic flights for June and July. They added that IndiGo has cut up to 10% of these flights, while Air India has trimmed 22% It marks a significant move by the two airlines that control around 90% of India's domestic market. The cuts could tighten seat availability on some domestic routes and keep fares elevated during the busy summer travel period.

[00:00:35]The conflict-driven surge in fuel prices has hit the aviation industry. Fuel can account for up to 40% of airlines operating expenses, forcing them to raise fares and cut unprofitable flights. Air India said it aims to restore its frequency as conditions stabilize. IndiGo, which operates over 2,200 daily flights, did not immediately respond to an emailed request for comment. Air India's cuts follow reductions to its international routes, which have created room for foreign airlines to add more flights to and from India. The reductions also show the vulnerability of India's fast-growing aviation market to external shocks, even as carriers are set to receive new jets in the coming years.