Rising fuel costs and weak demand force Air India, IndiGo to cut domestic flights

Air India and IndiGo will reduce domestic flight operations from June 1 for about three months due to rising aviation turbine fuel (ATF) prices and weak passenger demand.

Air India is expected to cut up to 15% of its domestic capacity, while IndiGo may reduce services by 5% to 7%.

The spike in jet fuel prices is linked to the ongoing Iran conflict, which has disrupted global aviation routes and increased operational costs for airlines.

Airlines are also facing a seasonal slump in demand after the summer vacation and school holiday travel period ended, making several routes less profitable.

The aviation sector is under financial pressure from fuel costs, route disruptions and earlier airfare regulations, prompting airlines to rationalise flight frequencies and suspend some services temporarily.