Air India, IndiGo remove over 250 daily flights from domestic routes

Air India, its low-cost subsidiary Air India Express, and IndiGo will together withdraw around 250 daily domestic flights from June amid rising aviation turbine fuel (ATF) costs, a move expected to further drive up airfares.

Airlines are also reporting weakening demand and subdued travel sentiment in what is already considered a traditionally weak season, as travel demand typically softens from mid-June onwards after the summer holiday period concludes.

Air India will cut 22% of its domestic flight schedule during June and July.

The airline currently operates around 3,600 weekly domestic flights, or nearly 500 flights a day, so the reduction will mean roughly 110 flights a day are withdrawn.

IndiGo, which operates nearly 2,200 daily flights, will reduce its domestic capacity by 5%, amounting to around 110 flights a day.

Air India Express, meanwhile, will cut nearly 10% of its approximately 340 daily flights on domestic routes.

The three airlines together enjoy 90% of the market share; in other words, nine out of 10 air travelers fly with one of them.

“These adjustments are driven by the sustained impact of high fuel prices on overall operations. Air India will continue to monitor demand and operating conditions closely,” Air India said in a statement.

IndiGo sources said a 5% cut was due to softer demand, with travelers cutting back on discretionary spending, on top of it being a lean travel season following the summer holiday rush.

A 25% rise in aviation turbine fuel (ATF) prices for domestic flights and nearly a 100% increase for international operations due to the West Asia conflict have sharply raised operating costs for airlines, pushing airfares up by 40-50% on several routes. Airlines had also imposed a fuel surcharge of Rs 400 to 450 in response. Industry observers say the latest capacity cuts could drive fares even higher.

Meanwhile, airlines have also begun restoring capacity on routes to West Asia as airspace restrictions ease across most destinations in the region, with Kuwait remaining one of the few exceptions.

“Air India Express now operates about 500 weekly flights between India and West Asia, up significantly from around 280 weekly flights just a few weeks ago, with services restored progressively across 11 airports in the region,” said Air India Express in a press statement. (The Hindu)