Soaring Aviation Turbine Fuel (ATF) prices—up nearly 18 % month-on-month according to industry trackers—have prompted major carriers to cut frequencies at Chennai International Airport. Local outlet LiveChennai reports that as of 17 June, Air India and IndiGo have cancelled or reduced flights to Singapore, Dubai, Sharjah and Colombo, with more adjustments likely if crude prices stay above US $105 per barrel. The squeeze follows fresh Middle-East supply concerns after maritime incidents in the Strait of Hormuz. Jet-fuel now accounts for roughly 45 % of Indian carriers’ operating costs, leaving little margin on thin-yield routes. Airlines are prioritising aircraft for higher-yield sectors such as long-haul Delhi–North America services. For mobility planners the ripple effect is immediate: Chennai-based assignees bound for corporate hubs in the Gulf or Southeast Asia face fare spikes of 25-30 % and longer connection times via Bengaluru or Mumbai. Multinationals should review travel budgets and consider flexible working or digital assignment models while capacity remains constrained. Chennai is India’s fourth-busiest airport for outbound traffic after Delhi, Mumbai and Bengaluru, and a key gateway for the automobile and IT corridors of Tamil Nadu. Persistent cuts could slow project timelines that rely on fly-in specialists. The Directorate General of Civil Aviation (DGCA) has asked airlines for weekly fuel-impact reports but stopped short of imposing fare caps. Observers expect schedules to stabilise only if ATF prices retreat below ₹95,000 per kilolitre.
Source: LiveChennai
