Air India trimmed its domestic schedule by up to 22 per cent last week, citing fuel costs. With IndiGo also pulling back capacity, travellers are now facing a tighter, pricier market—and industry insiders
say the full impact is still unfolding.
When Air India announced a reduction in select domestic flights on May 27, citing a steep rise in aviation turbine fuel (ATF) costs, it set off a ripple of concern across India’s travel ecosystem. The carrier is scaling back its domestic schedule by 20 to 22 per cent—and the consequences for everyday travellers are beginning to come into focus.
CNN-News18 spoke to passengers and industry insiders at Terminal 2, Indira Gandhi International Airport, to understand what this means on the ground.
A Market Already Under Pressure
The timing of Air India’s move is significant. The airline had already reduced select international flights on May 13—a step that evidently was not enough to offset the mounting financial pressure from ATF prices, eventually forcing a domestic cutback as well. And Air India is not alone: IndiGo, which commands the largest share of India’s domestic market, has also trimmed capacity—framing the reduction as part of its seasonal adjustment during the monsoon quarter, when travel demand traditionally softens. But the monsoon framing offers little comfort to travellers when both dominant carriers are pulling back at the same time. Beyond the two market leaders, SpiceJet and Akasa Air have also curtailed certain operations and introduced higher surge pricing on select routes, according to a New Delhi-based travel agent who spoke to CNN-News18.
IndiGo and Air India together account for a dominant share of India’s domestic aviation market. When both reduce flights in tandem, passengers have few meaningful alternatives—unlike in markets with a broader spread of carriers.
What Travellers Are Saying
For passengers who plan trips months in advance—coordinating leave, hotel bookings, and local logistics around fixed flight schedules—last-minute cancellations or sudden fare hikes carry costs far beyond the ticket price. A traveller at the airport told CNN-News18 that the reduction is particularly hard on those who build entire itineraries around confirmed flights, only to find them suspended or rescheduled.
Yet even among those most inconvenienced, air travel remains the default. The same traveller said he would continue choosing flights over rail or road—particularly for business and for trips to time-sensitive destinations—because the convenience and time efficiency are simply too valuable to give up.
Fares Could Still Climb
The travel agent CNN-News18 spoke with was candid about where prices are likely headed: reduced supply meeting steady demand is a textbook condition for higher fares. While the full effect on ticket prices has not yet been felt uniformly across routes, the agent warned that the coming weeks—as the monsoon season settles in—could see further fare escalation on popular corridors.
The impact, he noted, is already reshaping how travellers make decisions. Those who had planned international holidays to Europe are reconsidering, with more affordable alternatives like Vietnam gaining traction. Domestically, travellers are growing more price-sensitive, shifting preferred destinations based on what is available and what it costs to get there.
“Reduced flight availability combined with steady demand could still push ticket prices higher in the coming weeks,” said the agent.
How Travellers Are Adapting
With fewer seats available at competitive prices, travel patterns are beginning to shift. The agent noted a likely uptick in group bookings—bulk reservations tend to attract better pricing, and airlines are less likely to cancel large confirmed groups. For families, rail and road travel are re-entering the conversation as cost-management tools, though the agent was quick to point out that train reservations during peak holiday season present their own availability crunch.
For those with confirmed bookings on affected flights, the immediate question is how airlines handle the fallout—whether through timely refunds, viable rescheduling options, or alternate flight arrangements. How carriers manage that process will go a long way in shaping passenger trust heading into the travel season.
Looking Ahead
A week on from the announcement, the full scale of disruption is still becoming clear. The reduction in domestic capacity is a structural shift, not a temporary blip—and with ATF costs showing no immediate sign of easing, further adjustments cannot be ruled out. For India’s air travellers, the message from the market right now is simple: book early, stay flexible, and be prepared for the price of flying to look different than it did a month ago.
