indigo: The Indian aviation industry is currently experiencing notable transformations. IndiGo, the largest budget airline in the country, has opted to decrease its domestic flight capacity by 5 to 7 percent from June to August 2026. This decision comes in response to rising costs and a drop in air travel demand following the summer holidays. Before IndiGo’s announcement, Air India had also revealed a significant 22 percent cut in its domestic flight schedule for June and July.
Rising fuel prices and other challenges
Aviation experts indicate that the continuous rise in aviation turbine fuel (ATF) prices is a key factor behind this decision. Fuel represents about 25% of an airline’s overall operating costs. Recent geopolitical tensions in Iran and the Middle East have affected the global energy market, resulting in a sharp rise in crude oil prices. Additionally, the depreciating rupee against the dollar has further strained the financial stability of Indian airlines.
However, insiders at IndiGo assert that the reduction is purely driven by demand and not directly related to fuel costs. Air travel generally sees a decline from June to August, after the school holidays conclude in May, prompting airlines to manage their flight frequencies.
International flights also affected
Alongside domestic routes, IndiGo has also scaled back its international flight capacity by around 17%. This measure was required due to airspace restrictions and temporary scheduling adjustments. The airline has proactively removed these affected flights from its booking platforms to prevent last-minute disruptions for passengers. Those whose flights are cancelled will be provided with a refund or an alternative flight.
Smoke on IndiGo plane at Bengaluru airport
In the midst of these capacity reductions, a significant safety incident has been reported at Bengaluru’s Kempegowda International Airport. While IndiGo flight 6E 6017 from Bengaluru to Chennai was taxiing for takeoff, smoke was unexpectedly detected inside the aircraft. Upon noticing the smoke, the pilot immediately stopped the plane and all passengers were safely evacuated. The incident caused a brief panic at the airport.
What did Air India say?
Air India said in a statement that it has made “temporary changes” to some domestic routes between June and August. The airline said this decision was made due to rising fuel costs and operational pressures. The company will consider increasing the number of flights once the situation returns to normal.
Air India also stated that passengers whose flights are affected will be offered an alternative flight, a free rescheduling change, or a full refund. IndiGo has yet to issue an official statement on the issue, although the airline operates over 2,200 flights daily.
