Fewer Flights, Higher Fares? Air India And IndiGo Scale Back Domestic Routes

India’s two largest airlines, Air India and IndiGo, are temporarily reducing domestic flight frequencies over the coming months as rising Aviation Turbine Fuel (ATF) prices continue to put pressure on operational costs. The move is expected to impact seat availability across several routes and could potentially lead to higher airfares during the peak travel period.

According to multiple reports, the airlines have decided to scale down select domestic operations between June and August 2026, citing a combination of soaring fuel prices, geopolitical instability in West Asia and weakening seasonal demand after the summer holiday rush.

Air India to reduce domestic operations by up to 22%

Air India has confirmed that it is temporarily rationalising

operations on certain domestic routes, with reductions in frequencies on select services between June and August. Reports suggest the Tata Group-owned airline could reduce nearly 20–22% of its planned domestic services during this period.

The airline currently operates approximately 3,600 domestic flights weekly. A 22% reduction could translate into more than 790 fewer weekly services across the network.

In a statement, Air India said the adjustments were being made due to the “sustained impact of high fuel prices on overall operations.” The airline also stated that affected passengers would be offered alternative flights, rescheduling options or full refunds where applicable.

This comes shortly after Air India also reduced select international services amid rising operational costs, airspace restrictions and geopolitical disruptions linked to tensions in West Asia.

IndiGo also trims capacity amid cost pressures

IndiGo, India’s largest airline by market share, is also scaling back parts of its domestic network. Reports indicate the airline may reduce between 5% and 15% of planned domestic operations over the next quarter, depending on the route and seasonality.

The airline has not publicly detailed route-specific reductions yet, but industry reports suggest some high-frequency sectors and non-metro routes may witness fewer flights in the coming weeks.

Industry analysts say the timing reflects broader financial pressure on airlines as fuel prices surge globally. Aviation fuel accounts for nearly 40% of an airline’s operating expenses, making carriers especially vulnerable to oil price volatility.

Why are fuel prices rising?

The current rise in ATF prices has largely been linked to geopolitical tensions in West Asia, particularly the ongoing conflict involving Iran and disruptions across key oil-producing regions. Higher crude oil prices directly increase airline operating costs, especially in a price-sensitive aviation market like India.

Airlines are also dealing with additional operational burdens, including rerouted international flights, longer flying times due to restricted airspace and a stronger US dollar, which further raises leasing and maintenance costs.

What this means for passengers

With fewer flights available on certain routes, travellers could experience higher ticket prices, reduced flexibility and increased pressure on last-minute bookings during the summer and festive travel season.

Aviation experts also warn that reduced frequencies could particularly affect tier-2 and tier-3 city connectivity, where flight availability is already more limited compared to metro routes. However, airlines have maintained that the reductions are temporary and operations may be restored once fuel prices stabilise and demand improves.

For now, passengers travelling between June and August are being advised to monitor flight schedules carefully and book early where possible as airlines recalibrate operations amid a challenging cost environment.