Flight Ticket Prices: If you travel by air, this news might be a cause for concern. Airlines in the country have reduced flights and seats. For September 2026, airlines have scheduled 22.7 million seats, down from 23.8 million in September of the previous year. This implies a 4.5% reduction in seat capacity in just one year—a decline that has persisted for three consecutive months.
According to aviation data firm OAG, this reduction has been observed in domestic flights; domestic seat capacity has dropped by 5.6% to 15 million, while international seat capacity has decreased by 2.1% to 7.7 million.
Impact of Reduced Seat Capacity on Fares
Fewer seats mean fewer flight options for passengers on many routes. When seat capacity decreases on a route without a corresponding drop in passenger demand, airfares are likely to be affected. Data released by the DGCA indicates a 20.5% increase in fares across 72 domestic routes between March 2025 and June 2026.
Meanwhile, the seat occupancy rate for domestic flights stood at 83.1% in July, compared to 82.9% in July of the previous year. This suggests that despite reduced seat capacity, occupancy levels have remained largely stable. Consequently, if airlines further reduce capacity while passenger demand remains steady, airfares could rise.
Where Were the Steepest Cuts Observed?
Domestic seat capacity fell 5.6% in September, alongside a 2.1% drop in international capacity. This has directly impacted various airlines; notably, IndiGo—the country’s largest airline—saw its seat capacity fall by 4.5% to 11.2 million in September. Airlines cut about 525,000 seats in a single month. Following this, Air India’s seat capacity dropped by 8.8 per cent to 3.22 million. Meanwhile, Air India Express saw a 2.6 per cent reduction, leaving it with 2.54 million seats. Notably, seat capacity fell 8.4 per cent in August; the situation could improve further in September.
Find out why airlines are cutting flights
Iranian airspace was closed in March 2026 following tensions in West Asia. While flights to eastern destinations via Iran resumed in June, flights to the west remain suspended. EASA has advised airlines not to fly over Iran at any altitude. Advisories have also been issued regarding Iraq, Bahrain, Kuwait, Lebanon, the UAE, and Qatar. Additionally, Pakistani airspace remains closed to Indian aircraft. This means many flights must take longer routes, increasing time and fuel consumption.
ATF prices have risen
Aviation Turbine Fuel (ATF) has become more expensive. Effective September 1, the price of ATF rose by 5.46 per cent to ₹121.28 per litre. For context, the price was ₹115 in June and dropped to ₹110 in July. It subsequently rose to ₹115 in August and reached ₹121.28 per litre in September—marking the second consecutive hike. Fuel accounts for 40 per cent of an airline’s total operating costs; consequently, rising fuel prices may prompt airlines to reduce flights on lower-revenue routes.
Aircraft shortage is a major factor
Airlines are facing an aircraft shortage. Air India’s Chief Commercial Officer, Nipun Aggarwal, stated in July that the company had reduced its capacity by 15 per cent between June and August. This reduction is due to an aircraft shortage; new planes are delayed, and older aircraft are currently undergoing maintenance.
Which cities’ passengers will face issues?
While the country has about 10 major airports, seat capacity has declined significantly, particularly in Delhi and Pune. Kolkata saw the sharpest drop, down 19 per cent. This was followed by Hyderabad (14.7%), Ahmedabad (13.5%), Chennai (13.4%), and Guwahati (12.1%). Kochi recorded a 10.2 per cent reduction, Bengaluru 8.3 per cent, and Mumbai 6.5 per cent. Kerala is seeing a major impact, with a recorded decline of 26.2 per cent. Goa, West Bengal, and Tamil Nadu also saw declines of 17.6 per cent, 16.8 per cent, and 12 per cent, respectively.
Increased seat capacity on these routes
Seat capacity has not decreased on any route. On the Mumbai-Delhi route, capacity increased by 13.9 per cent, reaching 677,000 seats. The Bengaluru-Pune route saw a 26.8 per cent increase. Seat capacity also rose on the Delhi-Pune and Kolkata-Delhi routes. Conversely, capacity dropped by 9.5 per cent on the Mumbai-Hyderabad route and by 8.5 per cent on the Mumbai-Chennai route. The Hyderabad-Tirupati route saw a reduction of 1,318 flights.
Pressure on airlines
According to Singapore Airlines’ annual report—which shows a 25.1 per cent stake in Air India—the Air India Group incurred a loss of over ₹26,700 crore for the year ending March 2026, while the group’s revenue during this period exceeded ₹79,150 crore. Singapore Airlines’ profits fell by 57 per cent. The company has cited Air India’s losses as one reason for this decline.
Will flight fares rise?
Will flight fares rise?
The festive season is about to begin, and the winter schedule will come into effect from late October. If seat capacity decreases during this period, passengers may face fewer flight options. Although Air India had announced the resumption of 145 weekly international flights, its seat capacity actually declined by 8.8 per cent in September. ATF (Aviation Turbine Fuel) prices will also play a crucial role; if fuel prices rise on October 1, airline operating costs could increase. Additionally, the situation over West Asia—including Iran—will be a significant factor.