The reduction in scheduled operations was led by the Air India Group, which continued to rationalise its network during the month
| Photo Credit:
India’s consumption of aviation turbine fuel (ATF) fell steeply in July 2026 to its lowest level in more than two years as monsoon impacted air travel and carriers cut down on capacity across domestic and international operations. According to the Petroleum Planning & Analysis Cell (PPAC), India’s jet fuel usage fell roughly 4 per cent m-o-m and 1.5 per cent y-o-y to 699,000 tonnes on a provisional basis last month. This is the lowest since December 2023.For comparison, India’s aviation turbine fuel (ATF) consumption averaged at around 762,000 tonnes in Q1 FY27 and roughly 763,000 tonnes in entire FY26. The decline in ATF consumption last month comes against the backdrop of a moderation in scheduled airline operations, with carriers reducing capacity across both domestic and international markets.domestic flightsAccording to Cirium, the aviation analytics company, airlines scheduled 82,437 domestic flights in the month, down by 7,761 flights, or 8.6 per cent, from 90,198 in July 2025. International schedules also declined by 6.7 per cent to 35,366 flights, compared with 37,915 flights in the corresponding month last year.The reduction in scheduled operations was led by the Air India Group, which continued to rationalise its network during the month. Air India operated 11,386 domestic flights in July 2026, down by 3,171 flights from a year earlier, while Air India Express flew 2,130 fewer domestic services.Among other carriers, IndiGo scheduled 1,611 fewer flights, SpiceJet reduced operations by 918 flights and Akasa Air by 262 flights, compared with the corresponding month last year. Although some regional airlines expanded their operations, the increase was insufficient to offset the overall decline in scheduled capacity.The lower number of scheduled flights translated into fewer aircraft movements and reduced flying hours, both of which directly influence jet fuel consumption. Besides, the month witnessed operational disruptions at several airports due to adverse weather, resulting in delays, diversions and cancellations that further affected aircraft utilisation.Airlines also continued to optimise fleet deployment amid operational constraints and network rationalisation, contributing to lower overall fuel demand. The moderation in flying activity marks a departure from the strong capacity expansion witnessed over the past two years, when domestic aviation consistently added flights and seats to cater to robust passenger demand.Against this backdrop, the decline in ATF consumption in July reflects the combined impact of lower scheduled capacity, operational disruptions and reduced aircraft utilisation, rather than any structural weakening in underlying travel demand.Published on August 4, 2026
