Air India, IndiGo to Trim Operations for Three Months Amid ATF Price Surge
Airlines cut domestic flights as fuel costs surge dramatically.
Rising aviation turbine fuel (ATF) prices and weakening seasonal travel demand have prompted major Indian carriers, including Air India and IndiGo, to scale back flight operations for up to three months beginning June 1. The move comes amid mounting pressure on airline operating costs following disruptions in global crude oil supply linked to the ongoing tensions between the United States and Iran in the Middle East. Industry officials cited in the report said airlines are also preparing for the annual slowdown in passenger traffic after the school holiday season.
Tata Group-owned Air India is expected to reduce nearly 15 percent of its domestic operations, while InterGlobe Aviation-run IndiGo may cut between 5 and 7 percent of its services during the period. The development follows Air India’s earlier decision to trim some of its international flight schedules as carriers attempt to balance operational efficiency with rising fuel expenses. Aviation Turbine Fuel, a key cost component for airlines, reportedly accounts for nearly 40 percent of total operating expenditure, making airlines highly vulnerable to fluctuations in crude oil prices.
The spike in fuel costs has been attributed to continuing geopolitical tensions in the Middle East and supply disruptions affecting global energy markets. Reports indicate that concerns surrounding the Strait of Hormuz, one of the world’s most critical oil transit routes, have further intensified pressure on fuel prices since late February. The aviation industry has historically faced severe financial strain whenever crude oil prices rise sharply, with airlines often responding through fare hikes, route adjustments, or temporary capacity reductions.
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Industry analysts believe the temporary cuts are aimed at maintaining profitability and avoiding unnecessary operational losses during a softer demand cycle. While airlines have not announced large-scale cancellations, the reduction in services could impact flight frequency on select domestic routes across India. Experts also note that carriers may restore operations once fuel prices stabilize and travel demand improves in the coming months, particularly ahead of the festive and winter travel seasons.
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