Important news for air passengers: IndiGo and Air India will implement major changes starting June 1
Two of the country's leading airlines, IndiGo and Air India, are preparing to implement significant cuts to their services. This decision is being taken in light of a sudden surge in jet fuel (ATF) prices and reduced demand during the summer season. According to a report by 'The New Indian Express', IndiGo and Air India will reduce the number of their domestic flights for a 90-day period, commencing June 1.
During this period, IndiGo—the country's largest airline—will curtail its flight operations by 5–7 percent, while Air India will reduce its flights by approximately 15 percent. It is noteworthy that IndiGo and Air India collectively hold a market share of over 90 percent in the Indian aviation sector.
Rising ATF Prices Intensify Financial Pressure on Airlines
Since the outbreak of conflict in the Middle East in late February, airline companies have been grappling with a multitude of crises. Disruptions in crude oil supplies have triggered a massive surge in the prices of Aviation Turbine Fuel (ATF). Consequently, the operational costs for airlines have risen significantly. It is noteworthy that ATF alone accounts for 40 percent of any airline's total expenditure. As a result, airlines are incurring heavy financial losses due to the escalating cost of ATF.
ATF Prices Jump from ₹80,000 to ₹100,000
An Air India source stated, "We operate an average of 3,800 flights every week. Previously, the price of ATF for our domestic flights stood at ₹80,000 per kilolitre; this figure has now surged to over ₹100,000. ATF prices vary from city to city, as different state governments levy Value Added Tax (VAT) at varying rates. When ATF prices are this high, operating flights ceases to be economically viable. We have no intention of completely discontinuing flight operations on any specific route; however, we will be reducing the frequency of flights on certain selected routes."
Flight Frequencies to be Reduced for These Cities
Flights connecting Mumbai to Ahmedabad, Nagpur, Patna, and Bhopal are among the services likely to face cutbacks. The number of flights operating from Delhi to Hyderabad, Bengaluru, and Kolkata will also be reduced. Typically, demand for flights remains low during the months immediately following school holidays.
