Indigo To Cut Domestic Flight Capacity By Up To 7 Pc Amid Demand Adjustments

(MENAFN- IANS) New Delhi, May 27 (IANS) IndiGo is set to reduce its domestic flight capacity by 5-7 per cent between June and August 2026, becoming the second major Indian carrier after Air India to scale back operations amid rising cost pressures and softer post-summer travel demand.

The airline has also already reduced its international capacity by nearly 17 per cent as part of temporary schedule adjustments.

The move comes shortly after Air India announced a 22 per cent reduction in domestic flight operations during June and July.

Industry observers said the sharp rise in aviation fuel prices has been one of the key factors impacting airline operations.

Jet fuel accounts for nearly a quarter of an airline's operating expenses, making carriers highly sensitive to fluctuations in crude oil prices.

The ongoing Iran conflict has added further uncertainty to global energy markets, pushing crude oil prices significantly higher in recent months.

Since India imports a large portion of its crude oil requirements, domestic airlines have been particularly vulnerable to rising ATF costs. A weakening rupee has also increased the cost burden for carriers.

At the same time, airlines typically witness softer passenger demand after the peak summer vacation season, when school holiday travel tapers off.

Analysts said the combined impact of moderating demand and higher fuel expenses has forced airlines to recalibrate their capacity plans.

However, sources familiar with the matter told IANS that IndiGo's decision was primarily linked to demand-based capacity adjustments and not directly related to fuel prices.

“This is being done for capacity adjustments basis demand. Nothing related to ATF,” the sources said.

Meanwhile, a major scare was reported at Kempegowda International Airport on Tuesday after smoke was noticed in an IndiGo flight bound for Chennai while the aircraft was taxiing for departure.

According to the airline, IndiGo flight 6E 6017 from Bengaluru to Chennai was taxing out towards the runway when smoke was observed in the aircraft.

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