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Market Chatter: Iran War Fuel Surge Forces Indian Airlines to Slash Capacity

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India's largest airlines IndiGo and Air India have cancelled their domestic flight schedules for June and July as soaring global jet fuel costs driven by the Middle East conflict weigh on the industry, Reuters reported on Wednesday, citing sources.

IndiGo has pruned its planned domestic schedule by 7% to 10% for the upcoming two-month window. Meanwhile, Air India has executed a deeper 22% reduction in its domestic network, as per the report.

The ongoing geopolitical conflict in the Middle East has sent aviation turbine fuel prices soaring, blindsiding the aviation sector where fuel traditionally commands up to 40% of overall operating expenditures.

In a statement to Reuters, an Air India spokesperson confirmed the carrier has "temporarily rationalised operations on certain domestic routes" adding that frequencies would be restored as operating conditions stabilize.

However, both the airlines did not respond immediately to' requests for comments.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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