Air India, IndiGo to cut domestic flights amid fuel prices surge due to Iran war – What we know

India’s leading airlines have decided to cut down domestic flight operations amid rising fuel costs as tensions remain in West Asia. In a statement, Air India said that it was temporarily rationalising select domestic routes between June and August 2026. Reports suggested that IndiGo was also scaling down its domestic operations. This comes amid rising Aviation Turbine Fuel (ATF) prices as the global energy supply continues to be affected due to Iran war.

In a statement, Air India said, “In continuation of our previously announced adjustments to select international services between June and August 2026, we have temporarily rationalised operations on certain domestic routes during the same period, with a reduction in frequencies on select routes. These adjustments are driven by the sustained impact of high fuel prices on overall operations.”

According to a Reuters report, citing people familiar with the plans, the airlines will reduce their domestic capacity for June and July by 22 per cent.

Days earlier, Air India announced the suspension and reduction of flights on 29 international routes due to soaring aviation turbine fuel prices, airspace curbs, and operational challenges arising from tensions in West Asia and the Strait of Hormuz crisis. The carrier had either suspended or scaled back services on routes spanning North America, Europe, Australia and Southeast Asia, affecting flights from Delhi, Mumbai and Chennai to destinations including Chicago, San Francisco, Toronto, Paris, Singapore, Bangkok and Melbourne. However, it stated that it would still operate over 1,200 international flights each month across five continents despite the reductions.

Meanwhile, The New Indian Express reported, citing sources, that similar plans were being decided by IndiGo, saying that the airline would reduce between 5 per cent and 7 per cent of its domestic operations.

“Historically, the months following the academic vacation period witness lower occupancy levels. Due to the expected fall in demand, we will scale down operations from June 1. IndiGo operates 1,950 flights daily, so even a small percentage cut translates into a significant number of cancellations,” an airline source said, as quoted by The New Indian Express.