India's two largest domestic carriers, Air India and IndiGo, are reducing scheduled domestic flights due to soaring aviation turbine fuel prices [1, 2, 3].
The move impacts the vast majority of the country's aviation sector, as the two airlines control around 90% of the domestic market share [1].
Fuel costs represent up to 40% of airline operating expenses [1]. The current price spike is linked to the ongoing conflict between Iran and West Asia, which has disrupted energy markets and driven up the cost of jet fuel [1, 2, 3].
Air India plans to slash its domestic operations by 22% [1, 3]. This reduction involves the removal of more than 790 weekly services [3]. Reports on the timeline for these cuts vary, with some sources citing a period from June to July 2026 [1], and others stating the reductions will last from June through August 2026 [3].
IndiGo is also adjusting its schedule, reducing flights by up to 10% [1]. The airline is optimizing flight frequency to better align with current market demand amidst the fuel crisis [3].
These domestic cuts follow a period of rationalizing international operations for Air India [3]. The broader jet-fuel crisis has already led other airlines to cancel flights and increase costs for passengers, as noted in reports from earlier this month [6].
“The two airlines control around 90% of the domestic market share.”
The simultaneous reduction of capacity by India's dominant carriers suggests that the fuel price surge is too severe to be absorbed by operational efficiencies alone. Because these two airlines hold a near-monopoly on domestic travel, the reduction in flights will likely lead to higher ticket prices for consumers and reduced connectivity between regional hubs during the summer of 2026.
