Airlines are cutting not only international services but also domestic flights, especially on routes projected to remain unprofitable in the coming weeks due to weak demand and high fares.
Air India has temporarily reduced its domestic flights by 22 per cent due to the impact of high fuel prices, following a previous reduction in international flights. The airline is offering re-accommodation, date changes, or refunds to affected passengers.
India has significantly reduced Aviation Turbine Fuel (ATF) prices for international airlines by 27% due to easing global fuel benchmarks, while simultaneously increasing commercial LPG and 5-kg cylinder prices to record highs.
The support will be provided to oil-marketing companies (OMCs) in the form of interest-free advances through the ministry of petroleum and natural gas. The OMCs, in turn, will use the fund to provide ATF price stabilisation support to Indian carriers operating domestic and international flights.
Aviation fuel prices for domestic airlines remain unchanged, providing stability for local carriers, while commercial LPG and 5-kg cylinders see a significant rate hike due to rising international energy costs.
Air India, IndiGo and SpiceJet have told the government that the country's airline industry is under extreme stress and on the verge of "stopping operations", as they sought revision in ATF pricing and financial support.
Civil Aviation Minister K Rammohan Naidu announced that public sector oil marketing companies will implement a partial and staggered increase in jet fuel prices for domestic airlines, aiming to protect passengers from steep fare hikes.
Due to airspace restrictions resulting from the conflict in the Middle East, Indian domestic carriers have cancelled 278 international flights. Some airlines are operating limited services and special flights to assist stranded passengers.
Domestic airlines flew 1.29 crore passengers in April, a rise of more than 22 per cent compared to the year-ago period, according to official data released on Friday. However, the domestic air traffic number last month at 128.88 lakh was marginally lower than the 128.93 lakh recorded in March. In April 2022, the number of passengers carried by airlines stood at 105.47 lakh.
Civil Aviation Secretary Vumlunmang Vualnam on Thursday said the number of planes with domestic airlines will increase to 1,400 in the next five years as he highlighted the growth potential of the country's aviation space. Currently, the fleet is around 800 aircraft and leading carriers IndiGo and Air India have placed significant plane orders.
The country's largest airline IndiGo, which faced massive operational disruptions earlier this month, saw its domestic market share slide to 63.6 per cent in November, according to official data. Air India Group, comprising Air India and Air India Express, and SpiceJet had their respective market shares in November rise to 26.7 per cent and 3.7 per cent, respectively.
Loss-making Air India has introduced a new 'Basic Fare' category for select domestic flights, which does not include complimentary meals, as part of its efforts to trim expenses amid rising operational costs.
'We may be able to wind back some of the schedule reductions we'd taken in recent months.'
Aviation Turbine Fuel (ATF) prices have more than doubled to a record high, impacting airlines and consumers, while commercial LPG rates also see a significant increase.
The Adani Group-owned Navi Mumbai International Airport is slated to commence international passenger and freighter operations from July 15. This marks a significant expansion for the airport, which began domestic services last December. Air India Express and IndiGo are expected to operate international flights, with customs readiness reviews already completed. The airport anticipates a substantial increase in daily passenger footfall and air traffic movements by the year-end.
The broader conflict in West Asia, the largest international market for Indian carriers, has forced a sharp reduction in daily flights relative to the summer schedule.
India is the third-largest domestic airline market in the world, up from number five position a decade ago, according to analysis based on OAG data. The data shows India's domestic airline capacity doubling in a decade from 7.9 million in April 2014 to 15.5 million in April 2024. In reaching the third slot, India has replaced Brazil (pushed to fourth place with 9.7 million) and Indonesia (relegated to fifth in the rankings with 9.2 million).
At a panel discussion at the Centre for Asia Pacific Aviation's summit in Mumbai on Tuesday, Gopinath also said that airlines should price fares so as to maximise loads.
Air India, IndiGo, and Air India Express are temporarily reducing their domestic flights due to surging jet fuel prices and lower travel demand. The airlines are cutting flights by 10 to 22 per cent in the coming months.
This means a passenger flying between Delhi and Mumbai will now know that the minimum fare in the route will be Rs 95 (as being charged by SpiceJet) and can go up to a maximum of Rs 22,800 (as being levied by GoAir), plus around Rs 3,000 as components like passenger fees.
IndiGo, India's largest airline, reported a net loss of Rs 2,536.9 crore in the March quarter of fiscal year 2025-26, primarily attributed to a significant foreign exchange loss of approximately Rs 8,100 crore, the impact of December flight disruptions, and expenses related to new labour laws.
Two new airlines -- Al Hind Air and FlyExpress -- are set to take to the skies, with the carriers receiving their no objection certificates from the civil aviation ministry.
Indian carriers have cancelled over 10,000 flights since the onset of the West Asia conflict, as escalating tensions and airspace restrictions disrupted international operations, a senior government official said.
Despite reporting a weaker-than-expected net loss of Rs 2,536 crore for Q4FY26, largely due to a significant non-cash forex loss, analysts remain optimistic about IndiGo's long-term prospects, citing strong demand trends, a favourable pricing outlook, and strategic cost-control measures.
IndiGo has the lowest pilots-to-aircraft ratio among domestic airlines in India, according to data presented in Parliament. SpiceJet and Akasa Air have the highest ratios. Air India Express employs the most expat pilots.
Air India and Air India Express are introducing a fuel surcharge on domestic and international flights due to rising jet fuel prices, impacting travel costs for passengers.
A potential US-Iran peace deal, expected to be signed on June 19, is anticipated to ease geopolitical stress and benefit various sectors, particularly in India, with analysts suggesting investors await finer details before making significant moves.
Indian airlines are expected to cancel 444 international flights due to airspace restrictions in the Middle East following attacks on Iran by Israel and the US. The civil aviation ministry is closely monitoring the situation and coordinating with airlines to ensure passenger safety and minimize disruptions.
In the past, Qatar Airways has repeatedly expressed a desire to invest in IndiGo, the country's largest domestic airline.
In November alone, year-on-year growth in flight bookings for the season was almost 40 per cent, said Ranjeet Oak, senior vice-president (flights), MakeMyTrip, a leading Indian online travel agency.
Airports across the country have been placed on operational alert to manage potential flight diversions, unscheduled landings and passenger facilitation requirements.
The Competition Commission of India, following its preliminary inquiry, said the airline appeared to have caused an appreciable adverse effect on competition by restricting its services.
The airlines have waived charges for transport of relief cargo to Chennai.
Domestic airlines are preparing to offer lower fares for passengers without check-in bags in a move to improve seat occupancy and market share. IndiGo chief executive officer Ronojoy Dutta indicated the airline's interest to offer zero bag fares in an interaction with Bloomberg. Regulatory caps on fares and capacity related to Covid-19 have prevented IndiGo from taking a decision and the airline is discussing the issue with the government, he said.
Air India group announces fuel surcharges on domestic and international flights due to rising Aviation Turbine Fuel (ATF) prices, following the government's decision to cap domestic ATF price hikes.
Civil Aviation Minister Ram Mohan Naidu said the reduction in airport charges is aimed at containing airfare increases and supporting both airlines and passengers.
India's duopoly in the domestic skies -- where IndiGo and Air India collectively control over 90 per cent of the market -- is highly skewed, leaving very little room for new players
The DGCA has revised air ticket refund norms, allowing passengers to cancel or change tickets without additional charges within 48 hours of booking, subject to conditions. The new rules also address name correction fees and medical emergency cancellations.
As temperatures soar, booking queries have surged by double digits -- going up to 125 per cent -- for destinations like Kashmir, Shillong, Gangtok, Munnar, Leh, Rishikesh, Guwahati, Imphal, Kodaikanal and the Andamans.
'When we start describing somebody as an enemy that is the start of politics and emotion after which no business can take place.' 'We need to get out of this, allow Indian businessmen to do business with China.'
