- Indian carriers operated about 6pc fewer flights during Diwali compared with the previous year
- This marks the first capacity decline since 2020
- Rising costs and operational issues are cited as factors
- Jet fuel costs have spiked sharply
- Domestic passenger traffic fell 6.5pc in September
Indian airlines scheduled about 6pc fewer flights across October and November 2026 compared to the same period last year according to aviation analytics firm Cirium. This marks the first annual Diwali-season capacity decline since 2020. Carriers trimmed schedules and rationalised routes to manage severe financial and operational pressures.
Jet fuel costs have spiked sharply squeezing airline margins during what is traditionally their most lucrative season. A weaker Indian rupee has driven up the cost of dollar-denominated expenses including aircraft leases and maintenance. Ongoing airspace closures have forced airlines onto longer international flight paths increasing fuel burn and operational complexity.
Thinner schedules and higher base costs have sharply reduced seat availability pushing ticket prices beyond the reach of many festive travellers. On several domestic routes one-way festive fares have climbed to what round-trip tickets cost a year ago. IndiGo India’s largest airline cut its overall capacity by 1pc and carried 4.5pc fewer passengers in the September quarter. Despite raising passenger yields by over 34pc the carrier still posted a quarterly loss of 18.8bn rupees after its fuel bill jumped 67pc.
