India’s domestic flights cut 5% as fuel-price surge drives fare spikes

According to OAG, the number of domestic flights slated for the October-December period in India is down 5% from a year earlier, yet seat capacity has slipped just 1.2% because carriers are deploying bigger aircraft and adding seats per flight. Jet fuel prices have surged, and airlines face dollar-denominated costs such as leases and maintenance, exposing them to both fuel and currency fluctuations. As a result, domestic airfares are reported to be 30-40% higher than last year, with some high-traffic routes projected to rise an additional 15-20% as festive travel peaks.

While routes like Delhi-Mumbai and Delhi-Bengaluru stay busy, smaller markets such as Leh, Dehradun and Amritsar are also seeing growth. International schedules are expanding slightly, with notable capacity gains to Saudi Arabia, Canada and China, and leisure bookings to Southeast Asian destinations climbing sharply. Analysts warn that the combination of reduced flight frequencies and higher operating costs could keep price pressure on travelers through the holiday season.