Cabinet Approves ₹10,000 Crore Fund for ATF Price Stabilization to Support Airlines

Air India, along with its low-cost subsidiary Air India Express, and the budget airline Indigo, has decided to reduce their domestic flight schedules by a total of 250 flights daily starting in June. This decision comes in response to the ongoing rise in jet fuel prices, which have been putting pressure on operational costs for airlines.

Industry analysts suggest that this reduction in flights is likely to lead to higher airfares, as decreased supply may not meet the demand for air travel during this period. Additionally, the increase in fuel prices has been attributed to various global factors, including geopolitical tensions and fluctuations in crude oil prices, leading to increased costs across the aviation sector.

As airlines navigate these challenges, it remains to be seen how this will affect travel plans for passengers and the broader aviation market in India. The reduction in flights may also impact connectivity for smaller cities and regions that rely heavily on air travel.