Eight Indian airlines have significantly reduced their flight schedules for July-September 2026, with 273,549 domestic and international flights scheduled, representing an 8.5% decline from 298,939 flights in the same period last year. According to Forbes India analysis of OAG data, domestic flights are down 8.4% while international flights have fallen 9.9%. The sharpest decline occurred in July, with domestic schedules down 10% and international schedules down 14%. September shows the most severe impact, with total scheduled flights dropping to 90,850, which is 2,923 fewer than August.
Shares of domestic airlines InterGlobe Aviation (IndiGo) and SpiceJet continued their losing streak on Wednesday amid rising crude oil prices and the latest hike in Aviation Turbine Fuel (ATF) prices. According to reports from Moneycontrol, InterGlobe Aviation was trading at ₹4,942.50 on the NSE at 9:31 am, down 2.17%, while SpiceJet shares were trading at ₹9.72 on the BSE, down 2.70%.
On Wednesday, Brent crude jumped 1% to $95.60 a barrel, heading for its fourth gain in five sessions, as escalating fighting between the US and Iran heightened concerns over disruptions to energy flows through the Strait of Hormuz. As reported by Moneycontrol, the rise in crude prices comes after domestic ATF prices were increased 5.46% on Tuesday, marking the second consecutive monthly hike. Latest MCX data shows crude oil trading near ₹8,260 per barrel, with the September contract above both 20-EMA and 50-EMA levels, indicating positive momentum.
ATF prices rose by ₹6.28 per litre to ₹121.28 per litre from ₹115 per litre on Tuesday, according to Moneycontrol reports. The latest hike follows ATF prices rising 7.5% in August, following three consecutive monthly reductions. Fuel accounts for nearly 40% of an airline's operating costs, making movements in ATF prices a key factor for the sector. Domestic ATF prices had previously dropped from ₹115 per liter in June to ₹110 in July, but rose again to ₹115 per liter in August and ₹121.28 per liter on September 1.
IndiGo accounts for the largest share of the September decline, with its schedule down by 2,158 flights from August, according to Forbes India data. Air India schedules 875 fewer flights, while Air India Express adds 439 flights. The schedule reductions reflect operational disruptions from the West Asia conflict, which IndiGo's Managing Director Rahul Bhatia stated is disrupting routes and pushing up jet fuel prices. Weak demand is also putting pressure on capacity deployment, with airlines balancing fares and costs remaining challenging.
