Air India Cuts Scheduled Capacity Amid Aircraft Shortages, Fuel Costs, and Geopolitical Uncertainty

The lack of adequate aircraft , higher fuel costs and continued network rationalisation amid geopolitical uncertainty, is compelling Air India to cut scheduled capacity at almost twice the pace of the domestic aviation market. Disruptions to international airspaces and longer flight paths on some international routes have increased fuel consumption and operating costs, making the airline more selective in deploying aircraft. Air India’s scheduled capacity is set to fall 8.8% year-on-year to 3.2 million seats in September, from 3.5 million seats a year earlier, according to aviation analytics firm OAG. The industry’s scheduled capacity declined 4.5% to 22.7 million seats from 23.8 million in September 2025. The September schedules indicate that airlines are moving away from broad-based capacity expansion and becoming more selective about where they deploy aircraft. IndiGo, the country’s largest airline, has cut September capacity by 4.5% to 11.26 million seats. For Air India, the capacity reduction comes at a time when the airline is simultaneously trying to rebuild its fleet and expand its network. The aircraft availability, maintenance requirements and delivery schedules continue to influence how quickly capacity can be added. The airline is, therefore, balalcing its longer-term expansion plans with near-term operational constraints, deploying available aircraft on routes where demand and economics are stronger. Currently, its capacity reduction is also significantly sharper than that of its sister airline Air India Express. The low-cost carrier’s scheduled capacity is down 2.6% year-on-year to 2.54 million seats in September. Air India has a larger international footprint than Air India Express. Despite the reduction, Air India remains the country’s second-largest scheduled airline by capacity, with 3.22 million seats in September. IndiGo, of course, remains far ahead with 11.26 million seats, accounting for around half of India’s total scheduled capacity. Together, Air India and Air India Express account for around 5.76 million seats, or roughly one-fourth of the country’s total scheduled capacity in September. Akasa Air, meanwhile, is bucking the broader contraction, with scheduled capacity rising 5% year-on-year to around 837,000 seats. The airline has continued to expand its network and deploy additional aircraft even as larger carriers have become more cautious about capacity growth . SpiceJet has seen the steepest contraction among major carriers, with scheduled capacity plunging 45.2% year-on-year to around 261,000 seats. The sharp reduction reflects the airline’s continuing fleet constraints and limited availability of operational aircraft.