Domestic flight tickets in India are expected to become more expensive in the coming months as major airlines including Air India and IndiGo prepare to reduce domestic flight capacity amid rising fuel costs, operational disruptions, and weaker seasonal demand.
Airlines To Reduce Flights From June
According to reports, Air India plans to reduce domestic capacity by up to 15%, while IndiGo may cut operations by around 5% to 7% starting June 1 for nearly three months.
The move comes at a time when airlines are facing sharp increases in Aviation Turbine Fuel (ATF) prices due to geopolitical tensions linked to the Iran conflict. Rising fuel expenses have significantly increased operational costs for Indian carriers.
Airfares Expected To Increase
Industry experts believe the reduction in available seats could lead to higher domestic airfares, especially on busy metro and business routes where demand remains relatively stable.
Aviation analytics firm Cirium had earlier warned that domestic airfare prices could rise if airline capacity growth slowed down due to operational disruptions and fleet constraints.
The situation may worsen during weekends, festival periods, and last-minute bookings as fewer flights could create a demand-supply imbalance.
Iran Conflict Impacting Indian Aviation
The ongoing Iran-related geopolitical crisis has emerged as one of the biggest challenges for Indian airlines this year. Airlines are not only facing higher fuel prices but are also dealing with longer international routes because of restricted airspace access in some regions.
This has increased fuel burn, crew costs, and overall operating expenses across the sector.
Earlier this year, IndiGo had also introduced a separate fuel surcharge on domestic and international tickets because of surging jet fuel prices.
Seasonal Weakness Also Affecting Demand
Apart from fuel costs, airlines are also facing softer demand after the end of the summer holiday travel season. Industry executives say July to September is traditionally a weaker quarter for domestic aviation demand in India.
As a result, airlines are now trying to balance profitability by reducing excess seat supply and focusing more on higher-yield international routes.
Akasa Air Expanding While Rivals Cut Capacity
Interestingly, Akasa Air has emerged as one of the few airlines expanding operations during this period. Reports suggest Akasa increased flights by over 13% recently even as larger rivals scaled down services.
Analysts believe this could help Akasa strengthen its position in India’s highly competitive aviation market dominated by IndiGo and Air India.
Passengers May Need To Book Early
Travel experts now advise passengers to book domestic tickets well in advance to avoid sharp fare spikes. Flexible travel dates and mid-week bookings may also help flyers secure relatively lower fares during the upcoming capacity reduction phase.
