Air India and IndiGo to Cut Domestic Flights From June 1 Amid Rising ATF Jet Fuel Prices, Low Summer Demand

India’s major commercial carriers, Air India and IndiGo, are set to reduce their domestic flight operations starting June 1 for a 90-day period. The strategic scale-back comes as the domestic aviation industry grapples with a steep rise in Aviation Turbine Fuel (ATF) prices and a routine seasonal drop in passenger demand following the end of the academic holiday season. Together, the two airlines control more than 90 percent of the Indian aviation market.

Under the planned reductions, the Tata Group-owned Air India will cut up to 15 percent of its domestic flight frequencies, while the country's largest airline, IndiGo, plans to trim its domestic capacity by 5 to 7 percent. Airline officials stated that while no specific travel routes will be completely suspended, the total number of daily frequencies on several heavily traveled sectors will be temporarily trimmed. Maharashtra ATF Tax Cut: State Government Slashes Aviation Fuel VAT From 18% to 7% Amid West Asia Crisis to Keep Airfares in Check.

The operational adjustment is heavily driven by escalating jet fuel costs, which have been compounded by geopolitical tensions in West Asia and differing state-level value-added taxes (VAT). According to sources within Air India, the cost of ATF has spiked from approximately ₹80,000 per kilolitre to over ₹1,000,000 per kilolitre in multiple cities, rendering high-frequency operations financially unviable under current market conditions.

The cuts will primarily impact flights originating from major aviation hubs, including Delhi and Mumbai. Frequencies on key routes from Mumbai to cities such as Ahmedabad, Nagpur, Patna, and Bhopal are among those expected to be minimized. Similarly, flights connecting Delhi to southern and eastern hubs like Bengaluru, Hyderabad, and Kolkata will experience reductions. Air India Plans Daily Flight Cuts As ATF Prices Rise; Flights on These Routes To Be Affected.

This domestic rationalization follows similar reductions made to international schedules earlier this year due to ongoing regional airspace restrictions. The airlines indicated that the decline in international operations has also led to a drop in domestic connecting traffic, further dampening seasonal passenger volume. To prevent disruption, both carriers have removed the affected flights from their booking systems and have committed to offering impacted passengers alternative flight options, fee-free date changes, or full refunds.

(The above story first appeared on LatestLY on May 27, 2026 01:06 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).