Daijiworld Media Network - New Delhi
New Delhi, May 27: IndiGo is set to reduce its domestic flight capacity by 5–7 per cent between June and August 2026, becoming the second major Indian airline after Air India to scale back operations amid changing market conditions and rising operational costs.
The airline has also reportedly reduced its international capacity by nearly 17 per cent as part of temporary schedule adjustments.
The development follows Air India’s recent announcement of a 22 per cent reduction in domestic flight operations during June and July.
Industry experts believe soaring aviation turbine fuel (ATF) prices have emerged as a major challenge for airlines globally. Jet fuel typically accounts for nearly one-fourth of an airline’s operating expenditure, making carriers highly vulnerable to fluctuations in crude oil prices.
The ongoing geopolitical tensions involving Iran have contributed to volatility in global energy markets, leading to a sharp increase in crude oil prices in recent months.
Since India depends heavily on imported crude oil, domestic airlines have been facing mounting pressure from rising fuel costs. A weakening rupee has further increased operational expenses for carriers.
Apart from fuel prices, airlines also generally witness softer travel demand after the peak summer vacation period, as school holidays conclude and leisure travel declines.
Analysts said the combination of moderating passenger demand and elevated operating costs has prompted airlines to recalibrate their network and capacity strategies.
However, sources familiar with the matter clarified that IndiGo’s decision was primarily linked to demand-driven operational adjustments rather than direct fuel cost pressures.
“This is being done for capacity adjustments based on demand. Nothing related to ATF,” sources reportedly stated.
Meanwhile, the airline also witnessed a technical scare on Tuesday at Kempegowda International Airport after smoke was reportedly observed in an IndiGo aircraft preparing for departure.
According to the airline, flight 6E 6017 from Bengaluru to Chennai was taxiing towards the runway when smoke was noticed onboard the aircraft. Further details regarding the incident have not yet been officially disclosed.