India’s biggest carrier IndiGo is set to halt flight operations to six overseas locations, covering Shanghai and Hong Kong, as sluggish travel appetite and extreme cost headwinds weigh on its international services.
In an official announcement released on Thursday by InterGlobe Aviation Ltd., IndiGo will halt its routes to Langkawi, Krabi and Ho Chi Minh City starting July 1, while flights to Siem Reap will be suspended from July 3. The suspended services are scheduled to restart on October 1, with an earlier resumption possible if operational market conditions take a turn for the better.
The budget airline posted an unanticipated quarterly loss for the three-month period ending March 31 last week, attributing the poor financial result to mounting cost burdens, operational disruptions and tepid travel demand stemming from the ongoing Middle East tensions. Its overall expenditure jumped by 30% year-on-year. Having just bounced back from a major operational breakdown in December, IndiGo faced further operational hurdles triggered by the Iran conflict.
The Iran conflict has driven a sharp spike in jet fuel prices, prompting aviation operators worldwide to hike ticket prices and scrap loss-making flight routes. Stefano Baronci, chief of the global airport industry association, noted last month that inflated airfares have dampened consumer travel demand, and elevated ticket prices are expected to persist for the foreseeable future.
Despite the route adjustments, IndiGo stressed that it will maintain over 1,800 weekly international flights. The airline is fine-tuning its flight capacity to align with current market demand, amid sustained high operational costs and continuous airspace limitations.
