ATF Prices Surge, Air India Cuts 15% and IndiGo Cuts 7% of Domestic Capacity from June

In light of increasing issues in the aviation sector, Air India and IndiGo have made a joint decision. They have decided to reduce their domestic flying capacity beginning from June 1st. The reduction will be in effect for three months and can result in problems for consumers.

It has been stated that the primary cause behind their decision is the increase in prices for aviation turbine fuel (ATF). With rising international oil prices due to the U.S.-Iranian clash, it becomes difficult for airlines to operate. Seasonal effects are also a reason for this move. Air India will reduce its domestic capacity by up to 15%, while IndiGo will do so by 5% to 7%. This reduction is being made to control operating costs and minimize losses. This decision may cause some inconvenience to passengers.

The prices of aviation turbine fuel are increasing constantly, thus posing problems to the airlines. Due to US-Iran conflict, the price of crude oil in international markets is rising. As a result, the cost of ATF is also increasing. The fuel component constitutes a significant portion of the total expenditure of airlines.