India’s largest airline IndiGo on Thursday announced the temporary suspension of flights to six international destinations, including Hong Kong, Shanghai and Thailand’s Krabi, as it moves to optimize its network amid soft travel demand and rising operating costs.The budget carrier said services to Langkawi, Krabi, Ho Chi Minh City, Hong Kong and Shanghai would be suspended from July 1, while flights to Siem Reap would be halted from July 3.According to a statement from the company, the suspension will continue till September 30.IndiGo said the decision has been taken due to the “traditionally soft demand” and “incredibly challenging cost environment” expected in the upcoming quarter.The airline said bookings for all affected routes will resume from October 1, subject to improvement in market conditions.It also said it was ready to resume services if the operating environment improves.
network optimization amid rising costs
Despite the temporary route suspension, IndiGo said it has retained most of its international operations and continues to operate over 1,800 international flights every week.“These measured changes are designed to align capacity with current market conditions and demand trends, while ensuring that the airline maintains reliability and network integrity at its global destinations,” the airline said.The carrier also cited increased operating costs and continued airspace restrictions as factors influencing its decision, and said it would continue to monitor the situation.
Airlines are struggling with the pressure of fuel prices
The move comes amid widespread capacity cuts in the Indian aviation sector as carriers grapple with high aviation turbine fuel (ATF) prices and geopolitical disruptions.Both Air India and IndiGo are cutting capacities between June and August due to rising fuel costs.IndiGo had already indicated plans to reduce domestic capacity by 5-7 per cent and international capacity by 17 per cent.Meanwhile, Air India has announced cuts in both domestic and international operations. The Tata Group-owned airline is cutting domestic flights by about 22 per cent this summer as rising jet fuel prices, a weak rupee and low travel demand hit profitability.Industry-wide pressure has intensified following the Middle East crisis, which sent Brent crude prices sharply higher and disrupted global energy markets.Concerns over supply disruptions around the Strait of Hormuz have caused fuel costs to rise significantly, affecting the commercial viability of many airline routes.
