Jet Fuel Shock Hits Airlines: Air India, IndiGo To Slash Nearly 250 Flights Daily From June

India’s aviation sector is preparing for a leaner summer schedule as soaring jet fuel prices and softer post-holiday travel demand force airlines to trim capacity.

Air India and IndiGo are expected to reduce hundreds of flights between June and August, potentially affecting some of the country’s busiest routes and leaving passengers with fewer travel options.

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Key points generated by AI, verified by newsroom

• Airlines IndiGo and Air India are reducing flights this summer.
• High fuel costs and lower travel demand drive schedule cuts.
• Air India cuts domestic flights; international routes also impacted.

Travellers planning summer journeys may need to keep a closer eye on their itineraries. India's two largest airlines, IndiGo and Air India, are scaling back operations over the coming months as soaring fuel costs and softer travel demand reshape the aviation landscape.

The reductions are expected to affect hundreds of services every day between June and August, with some of the country’s busiest aviation corridors likely to feel the impact.

Airlines Trim Schedules as Costs Rise

The latest round of flight cuts comes at a challenging time for airlines. Aviation turbine fuel (ATF) prices have surged sharply following disruptions in global crude oil supplies linked to the ongoing conflict involving the US and Iran and tensions in West Asia.

ATF prices in several Indian cities have climbed from around Rs 80,000 to more than Rs 100,000. Rising fuel costs have significantly increased operating expenses for carriers, placing pressure on already stretched margins.

At the same time, airlines are entering a seasonally weaker demand period. Travel demand typically softens after the summer holiday rush, prompting carriers to reassess capacity and optimise schedules.

Air India Announces Major Domestic Rationalisation

Air India has temporarily reduced domestic operations as part of a broader network review.

The Tata Group-owned airline said it has rationalised frequencies on select domestic routes between June and August. Around 20-22 per cent of Air India’s domestic flights will be reduced during this period, reported PTI.

Air India currently operates approximately 4,400 weekly flights, including around 3,600 domestic services and 800 international flights. Based on these figures, the reduction translates to more than 790 domestic services being withdrawn every week.

In a statement, the airline said the changes are being driven by the sustained impact of elevated fuel prices on operations.

The carrier added that it will continue monitoring demand and operating conditions and may restore frequencies once the environment stabilises.

International Network Also Under Pressure

The domestic reductions follow Air India’s earlier decision to scale back international services.

On May 13, the airline announced a reduction of nearly 100 international flights between June and August and temporarily suspended services on seven overseas routes. These include Delhi-Chicago, Delhi-Newark, Mumbai-New York, Delhi-Shanghai, Chennai-Singapore, Mumbai-Dhaka and Delhi-Male.

The move is expected to result in a reduction of up to 27 per cent in international capacity.

Air India had also indicated at the time that further network adjustments could not be ruled out if the challenging operating environment continues.

IndiGo Also Planning Capacity Cuts

India’s largest airline, IndiGo, is also expected to trim operations.

According to industry inputs, IndiGo is planning to reduce domestic flights by around 5-7 per cent while cutting international services by approximately 17 per cent.

Combined with Air India’s reductions, the total number of flights being withdrawn could reach around 250 services per day during the June-August period.

Busy sectors such as Delhi-Mumbai and routes linked to Bengaluru are expected to be among the most affected as airlines focus on route profitability and demand patterns.

What Happens If Your Flight Is Cancelled?

Airlines have sought to reassure passengers affected by schedule changes.

Air India said customers impacted by the revised schedules will be proactively assisted through alternative flight arrangements, complimentary date changes or full refunds, depending on the circumstances.

Similar options are likely to be offered across affected services.

Travellers are being advised to keep track of airline communications and regularly check flight status updates ahead of travel.

Fuel Prices Emerge as Aviation’s Biggest Challenge

The current pressure on airlines reflects broader turmoil in energy markets.

The conflict in West Asia has disrupted global supply chains and pushed crude oil prices significantly higher. The Strait of Hormuz, one of the world’s most important energy transit routes, remains a focal point of concern for energy markets.

The resulting increase in fuel costs has affected both domestic and international aviation operations. Industry estimates suggest fuel expenses for domestic flights have risen by around 25 per cent, while international routes have seen even sharper increases.

For airlines, fuel remains one of the largest components of operating expenditure, making sustained price increases difficult to absorb.

Financial Pressures Continue to Mount

The challenging environment is also reflected in Air India’s financial performance.

According to figures disclosed by Singapore Airlines Group in its annual financial report for 2025-26, Air India reported a loss of more than SGD 3.56 billion (over Rs 26,700 crore) for the financial year ended March 2026.

Singapore Airlines Group, which owns a 25.1 per cent stake in Air India, said its own net profit fell 57 per cent to SGD 1.184 billion (nearly Rs 8,900 crore), partly due to Air India’s losses and the absence of a one-off gain related to the Vistara merger.

While airlines insist the cuts are temporary and designed to match demand with operating realities, the developments underline how rising fuel prices and geopolitical tensions are beginning to influence everyday travel decisions.