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Updated May 27, 2026 · 16:50
Business India News Updated May 27, 2026

Air India, IndiGo Cut Domestic Flights as Fuel Prices Soar

Air India and IndiGo are reducing domestic flight operations between June and August 2026 due to high aviation turbine fuel prices. Air India is cutting up to 22% of domestic flights, while IndiGo plans a 5-7% reduction in domestic capacity and 17% in international capacity. The fuel price surge is linked to Middle East tensions and disruptions around the Strait of Hormuz. Brent crude prices remain significantly higher despite recent moderation.

High fuel prices: Air India cuts 22% domestic flights; IndiGo trims 5-7% domestic, 17% international

New Delhi, May 27

Air India and IndiGo are reducing domestic flight operations between June and August 2026 as high aviation turbine fuel prices continue to impact airline operations and commercial viability.

Air India is set to cut up to 22 per cent of its domestic flights during the period, while IndiGo plans a 5-7 per cent reduction in domestic capacity. IndiGo has also reduced its international capacity by 17 per cent.

Air India on Wednesday said it has "temporarily rationalised operations on certain domestic routes" with a reduction in frequencies on select routes between June and August 2026.

The airline said the move follows its earlier decision to trim select international services during the same three-month period.

"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," Air India said in a statement.

According to the airline, the adjustments are "driven by the sustained impact of high fuel prices on overall operations."

Brent crude oil prices have surged more than 50 per cent over the last nearly three months as tensions in the Middle East intensified following the conflict between the United States and Iran. The energy markets have remained under pressure due to fears of prolonged supply disruptions in the region.

Global oil supply has also been impacted by disruptions around the Strait of Hormuz, one of the world's most critical oil shipping routes, leading to a sharp increase in fuel and energy prices globally. The Strait of Hormuz handles a significant share of global crude oil transportation, and any disruption in the route directly impacts international energy markets.

Although Brent crude prices have recently moderated and were trading around USD 96 per barrel at the time of filing this report, prices still remain significantly higher compared to levels before the geopolitical tensions escalated.

— ANI

Reader Comments

Priya S

I appreciate the transparency from airlines, but this will hurt connectivity in smaller cities. Already our region sees limited flights, and now reductions mean fewer options for work and family visits. Why can't airlines hedge fuel better?

Vikram M

Typical corporate response—cut costs, but passengers suffer. 🛑 Air India could use this to improve efficiency, not just slash routes. And what about refunds for those already booked? This will create chaos! ✈️

Ananya R

Global oil prices are a mess due to US-Iran tensions and the Strait of Hormuz disruptions. It's a domino effect—India's 85% oil imports leave us vulnerable. We need to invest in renewable energy and strategic reserves fast! 🌍🇮🇳

James A

As someone who flies often for work, this is worrying. IndiGo cutting 5-7% domestic and 17% international—prices will skyrocket. I hope the government considers GST on ATF or some relief for passengers. Otherwise, trains are the only option! 🚂

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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