India's IndiGo cuts six international routes amid rising costs, airspace restrictions
India's IndiGo cuts six international routes amid rising costs, airspace restrictions June 4 (Reuters) - IndiGo INGL.NS, India's largest airline, on Thursday said it would suspend operations to six international destinations, including Hong Kong and Shanghai, starting July 1, citing higher operating costs and broader pressure from continued airspace restrictions.
The move comes a week after IndiGo reported a fourth-quarter loss, largely due to higher jet fuel costs.
The Iran conflict has disrupted air travel through airspace closures, longer flight reroutings and a sharp rise in jet fuel prices, increasing cost pressures on airlines globally.
Pakistan's airspace ban on Indian carriers, imposed amid military tensions last year, has also increased flight times and operating costs.
IndiGo said it has suspended flights to Langkawi (Malaysia), Krabi (Thailand), Ho Chi Minh City (Vietnam) and Siem Reap (Cambodia).
The company added traditionally softer demand for these destinations in the quarter also spurred the cuts, but it plans to reopen bookings from October 1, or earlier if conditions improve.
Despite the cuts, the airline said it will continue operating more than 1,800 international flights a week.
In May, CFO Gaurav Negi said the airline may consider fuel hedging amid the ongoing geopolitical uncertainty.
Reuters last week reported IndiGo had cut its planned domestic flights for June and July by 7-10%. Rival Air India has cut 22% of domestic flights for the same period.
Air India also reduced services on several international routes in May, citing similar operational challenges.
($1 = 95.7850 Indian rupees)
(Reporting by Abhirami G in Bengaluru; Editing by Vijay Kishore)
((abhirami.g@thomsonreuters.com))
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