Will ATF Prices Cool Off As Air India, IndiGo Slash Domestic Flight Operations?

While Air India, and Indigo have decided to slash domestic operations starting, ATF prices are likely to remain the same, industry sources told Republic Media Network.

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Air India and IndiGo are set to reduce domestic operations starting from June 1, 2026. | Image: Unsplash

The cost of jet fuel also known as aviation turbine fuel (ATF) is likely to remain unaltered even after Air India, and Indigo decided to slash domestic operations starting from June 1, industry sources told Republic Media Network.

The reduction in day-to-day domestic operations comes during a period when ATF prices have already surpassed the Rs 1 lakh per kilo litre mark.

On May 27, the price of jet fuel in New Delhi stood at Rs 1,04,927 per kilo litre, while in Chennai ATF price stood at Rs 1,09,873 per kilo litre.

What Triggered Air India & IndiGo's Latest Cut Back?

The two carriers, which control over 90% of the south Asian country's aviation market have been pushed to reduce domestic operations due to impact of high ATF prices, and crude oil price volatility due to the West Asia conflict.

As per media reports, Air India will reduce up to 15% of its domestic operations, while IndiGo plans to cut between 5% and 7% of its domestic services.

Air India Spokesperson penned, "In continuation of our previously announced adjustments to select international services between June and August 2026, we have temporarily rationalised operations on certain domestic routes during the same period, with a reduction in frequencies on select routes."

Also Read: Why RBI’s June Policy Hold Is A Tactical Defense Against Global Shocks

"These adjustments are driven by the sustained impact of high fuel prices on overall operations. Air India will continue to monitor demand and operating conditions closely, with a view to restoring frequencies as conditions stabilise. Passengers impacted by these changes will be proactively assisted with re-accommodation on alternative flights, complimentary date changes, or full refunds, as applicable," the Air India official noted.

Meanwhile, flight services from Mumbai to Ahmedabad, Nagpur, Patna and Bhopal are among the ones likely to be reduced. From the Delhi Airport, the number of flights to Hyderabad, Bengaluru and Kolkata might also be impacted, as per media reports. 

On the other hand, a reduction in IndiGo's daily domestic flight operations would elevate the number of cancellations across India. 

 

 

 

 

Published By : Nitin Waghela

Published On: 27 May 2026 at 15:51 IST