Domestic Airfares Set to Soar: IndiGo Capacity Cuts Blamed for Price Hike

• Domestic air travelers face higher fares in coming months due to a 2% reduction in available seats by April 2026.
• IndiGo's 10% capacity reduction, imposed by DGCA, is the primary reason for the decrease in flight availability.
• The capacity cuts stem from an operational crisis in December 2025, leading to flight cancellations and new FDTL rules.
• IndiGo's net profit dropped by 77.6% to Rs 549.8 crore, impacted by exceptional expenses and a DGCA penalty.
• With IndiGo holding a 65% market share, its capacity reduction will significantly impact the entire domestic aviation sector, leading to more expensive tickets and fewer options for passengers.