IndiGo plans to cut its domestic flight capacity by 5-7% between June and August 2026, following Air India’s lead in scaling back operations due to increased costs and lower post-summer travel demand. The airline has already decreased its international capacity by around 17% through temporary schedule adjustments. Air India had recently announced a 22% reduction in domestic flight operations for June and July, citing similar challenges.
The surge in aviation fuel prices has significantly impacted airline operations, with jet fuel representing a substantial portion of carriers’ operating expenses. Fluctuations in crude oil prices have made airlines highly vulnerable, a situation exacerbated by the uncertainty in global energy markets due to the Iran conflict. India’s heavy reliance on imported crude oil has made domestic airlines particularly susceptible to rising aviation turbine fuel (ATF) costs, further burdened by a depreciating rupee.
Post the peak summer vacation season, airlines typically experience a decline in passenger demand as school holiday travel diminishes. The combination of reduced demand and escalating fuel expenses has compelled airlines to adjust their capacity plans. Despite the challenges, sources close to the matter clarified that IndiGo’s capacity reduction is primarily demand-driven and not solely a response to fuel prices.
A recent incident at Kempegowda International Airport raised concerns when smoke was detected in an IndiGo flight bound for Chennai during taxiing. The airline reported that smoke was noticed in IndiGo flight 6E 6017 from Bengaluru to Chennai as it was taxiing towards the runway for departure.
