Forbes India
The pressure on airlines is no longer limited to international routes. This week, Indian carriers began trimming domestic capacity as higher fuel costs continued to weigh on operations. At the same time, a series of safety-related developments—from an Air India engine fire investigation to an IndiGo evacuation and fresh Ebola protocols for airlines—kept regulators focussed on operational risks. SpiceJet, meanwhile, continues to face legal scrutiny, while Bengaluru airport shows signs of improving financial health. Airlines cut flights as fuel costs riseAir India and IndiGo announced capacity reductions as high prices of aviation turbine fuel (ATF) continue to put pressure on operations. Air India said it will temporarily reduce frequencies on select domestic routes between June and August, following earlier cuts to some international services. IndiGo plans to trim domestic capacity by 5 to 7 percent and has already reduced international capacity by 17 percent. The moves come as Brent crude remains elevated due to the ongoing West Asia conflict, pushing ATF prices above Rs 1 lakh per kL. Photo by Indranil Mukherjee / AFP Domestic air traffic falls in April, fuel costs rise: ICRACredit rating agency ICRA on Friday said domestic passenger traffic fell 1.6 percent year-on-year to 140.8 lakh passengers in April 2026. Traffic was also down 2 percent from March levels. Meanwhile, international traffic carried by Indian airlines grew 3.9 percent in FY26, below ICRA's earlier forecast of 7 to 9 percent. ICRA also noted that ATF prices in May were 23.5 percent higher than a year ago because of the West Asia conflict. Photo by Idrees Mohammed / AFP DGCA probes Air India engine firePreliminary findings by the Directorate General of Civil Aviation (DGCA) suggest improper maintenance may have caused the engine fire warning on an Air India Airbus A320 flying from Bengaluru to Delhi last week. According to an Economic Times report, investigators suspect fuel leakage after a nozzle replacement was carried out one to two days before the incident; it was possibly due to insufficiently tightened components. The aircraft landed safely in Delhi after the crew declared a Mayday. DGCA has asked Air India to inspect other aircraft where similar maintenance work was carried out. Photo by Shutterstock DGCA issues Ebola protocols for airlinesThe DGCA issued a standard operating procedure for airlines amid the Ebola outbreak in parts of Africa. Airlines carrying passengers from Uganda and Congo have been directed to collect self-declaration forms before disembarkation and make mandatory in-flight health announcements. The regulator has also outlined procedures for handling suspected cases onboard, including isolation measures and designated parking bays on arrival. Health Minister JP Nadda said no Ebola cases have been reported in India so far. Photo by Simon Maina / AFP Smoke triggers IndiGo evacuationAn IndiGo flight from Bengaluru to Chennai was evacuated on May 26 after smoke was detected onboard while the aircraft was taxiing for departure. All passengers and crew were safely moved to the terminal and an alternative aircraft was arranged. The airline said the evacuation was carried out as a precaution and that all relevant authorities were informed. The incident came just weeks after the DGCA tightened safety rules around passengers carrying lithium-ion batteries and power banks on flights. Photo by Shutterstock SpiceJet ordered to disclose assetsThe Delhi High Court directed SpiceJet to disclose its assets in a sealed cover in a dispute with aircraft engine lessor Sunbird France 02 SAS. The lessor is seeking enforcement of a UK court order directing the airline to pay about $8 million in unpaid lease rentals and maintenance dues linked to three aircraft engines leased in 2019. The next hearing is scheduled for July 29. Photo by Shutterstock Air India Express launches 5-million seat saleAir India Express launched its 'Xpress Sale', offering 5 million seats across domestic and international routes with discounts of up to 50 percent on select fare categories. The sale is open for bookings until May 31 for travel between June 15 and October 10. The airline is also offering additional benefits to Tata NeuPass members, including discounts on business class fares, meals and baggage options. Photo by Noah Seelam / AFP Bengaluru airport pays first dividend since FY18Bengaluru International Airport Limited (BIAL) paid a dividend of Rs 16.5 crore to Karnataka State Industrial and Infrastructure Development Corporation (KSIIDC). This marks the airport's first dividend payout since FY18. The airport operator declared a dividend of Rs 3 per share for FY26. BIAL said profits had been reinvested in recent years to fund major infrastructure expansion and capacity enhancement projects at Kempegowda International Airport. The dividend comes as the airport overtook Mumbai to become India's second-busiest domestic airport in April, with 3.18 million passengers, ahead of Mumbai's 2.89 million, according to AAI data. Mumbai, however, remained larger overall, handling 4.05 million passengers (including international flyers) compared to Bengaluru's 3.69 million. Photo by Shutterstock Akasa flight diverted due to bad weatherAn Akasa Air flight from Bengaluru to Bhubaneswar was diverted to Lucknow on May 27 due to adverse weather conditions that prevented landing at its destination. The airline said the crew followed standard operating procedures and the flight later resumed its journey, landing safely in Bhubaneswar shortly after midnight on May 28.Photo by Avishek Das/SOPA / LightRocket via Getty Images (With inputs from ANI and PTI)
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