New Delhi, May 27: India’s two biggest airlines — Air India and IndiGo — are reportedly planning to reduce flight operations from June 1 for nearly three months due to soaring Aviation Turbine Fuel (ATF) prices and a seasonal decline in passenger demand.
According to reports, the decision comes amid rising global tensions, including the ongoing US-Iran conflict, which has pushed international crude oil prices higher and increased operational costs for airlines.
Sources said Air India may reduce nearly 15 percent of its domestic flight operations, while IndiGo is expected to cut around 5 to 7 percent of its services temporarily.
ATF currently accounts for almost 40 percent of an airline’s operating expenses, making fuel price hikes a major concern for carriers. Reports suggest domestic ATF prices have jumped from nearly ₹80,000 per kilolitre to over ₹1 lakh in several states.
A senior Air India official reportedly said the airline currently operates around 3,800 flights weekly, and continuing operations at existing fuel prices is becoming financially difficult. However, the airline is unlikely to suspend routes completely and may instead reduce flight frequencies on selected sectors.
Routes expected to witness fewer flights include Mumbai–Ahmedabad, Mumbai–Nagpur, Mumbai–Patna, Mumbai–Bhopal, along with Delhi connections to Hyderabad, Bengaluru and Kolkata.
Meanwhile, IndiGo, which operates close to 1,950 flights daily, is also preparing for temporary capacity reductions as travel demand usually falls after the peak summer and school holiday season.
The aviation industry is additionally facing the impact of varying state-level taxes on jet fuel. Delhi recently reduced VAT on ATF from 25 percent to 7 percent for six months, while Maharashtra has also announced a temporary reduction to 7 percent till November.
Experts believe the combined impact of higher fuel costs and fluctuating passenger demand may lead to volatile airfares and reduced flight availability across domestic routes in the coming months.
Jhelum Journal News Desk
