Indigo Shares Falls Over 1% After Airline Suspends Six International Routes Amid Rising Cost Pressures

Mumbai, June 5: InterGlobe Aviation share price fell more than 1% on Friday after India’s largest airline announced the suspension of services to six international destinations from July 1, citing higher operating costs, persistent airspace restrictions and weaker seasonal demand. 

The move comes just a week after IndiGo reported a fourth-quarter loss, with elevated jet fuel prices emerging as a key drag on profitability. Investors appeared concerned that ongoing geopolitical tensions and rising costs could continue to pressure earnings in the near term. As of writing, the stock was down 0.8% at Rs 4,472. 

Six international routes suspended 

IndiGo said it will temporarily halt flights to Hong Kong, Shanghai, Langkawi in Malaysia, Krabi in Thailand, Ho Chi Minh City in Vietnam and Siem Reap in Cambodia. 

The stock hit turbulence over the scaling down of operations, a week after the carrier reported a loss chiefly due to elevated fuel prices. Source: NSE    

The airline said the decision was driven by a combination of rising operating expenses and traditionally softer demand for these destinations during the current quarter. However, it plans to reopen bookings from October 1, or earlier if market conditions improve. 

Despite the cuts, IndiGo said it will continue operating more than 1,800 international flights a week, underlining that the suspensions represent a targeted optimisation of its network rather than a broader pullback from overseas markets. 

Manchester Flights Also Discontinued 

On June 2 IndiGo announced discontinuing its flights to Manchester from August 31, less than a year after launching the services, amid escalating operational costs and airspace constraints. 

The country’s largest airline, which has significantly expanded its international operations, would also be returning one Boeing 787-9 Dreamliner aircraft leased from Norse Atlantic Airways following the decision to stop Manchester flights. 

 Currently, three weekly and four weekly services are operated to Manchester (UK) from Delhi and Mumbai, respectively. The flights were started in July 2025. 

Once these flights are discontinued from August 31, there will be no direct air connectivity between Indian cities and Manchester. 

Geopolitical tensions fuel cost escalation 

Airlines across the region have faced mounting challenges following the conflict involving Iran, which has disrupted global aviation routes through airspace closures, lengthy flight diversions and a sharp increase in jet fuel prices. 

The situation has forced carriers to reroute aircraft around conflict zones, leading to longer flight times, higher fuel consumption and increased crew costs. These pressures have significantly raised operating expenses for airlines worldwide. 

IndiGo is also contending with Pakistan’s continued ban on Indian carriers using its airspace, imposed after military tensions between the two countries last year. The restriction has lengthened flight durations on several international routes and added to cost pressures. 

Capacity cuts reflect a cautious approach 

The route suspensions are part of a broader effort by IndiGo to manage capacity and protect margins in an increasingly challenging environment. 

In May, IndiGo Chief Financial Officer Gaurav Negi said the carrier was evaluating fuel hedging strategies to mitigate the impact of volatile energy prices amid heightened geopolitical uncertainty. 

Investors watch profitability outlook 

While analysts view the route rationalisation as a prudent step to improve efficiency, the market reaction reflects concerns that sustained fuel inflation and airspace disruptions could weigh on profitability. 

(With PTI inputs)