Airlines are cutting frequencies to Bangladesh, Nepal and Thailand amid rising fuel prices that has pushed up airfares and slowed travel demand.

While Air India and IndiGo have reduced Dhaka flights, Air India Express has cut its sole service from Kathmandu to Bengaluru in April. Flights tickets are open for sale again in May

Air India Express is also curtailing flights between Surat and Bangkok in the summer schedule.

Passengers from Bangladesh connect to West Asia via Mumbai and Delhi. The Iran-US conflict and subsequent cancellation of flights to West Asia region has impacted traffic flows. Also higher airfares has tapered demand to Thailand and South East Asia.

“We had expected passenger demand to come from South East Asia routes but that has not happened. It appears that people are deferring leisure travel,” an airline executive said.

Domestic and international airfares have risen with introduction of fuel surcharges. “Nearly half of the seats were sold before the current crisis when fuel price was around $ 80 and now that cost has risen airlines need to recover the extra expenses,” he reasoned.

Fuel price to remain elevated 

State oil marketing companies have limited fuel price hike to 25 per cent for scheduled domestic flights in April. There is no price relief for international and charter flights and aviation turbine fuel price (ATF) rates for those flights have been doubled.

While the future ATF rates would depend on crude oil price movement, petroleum companies are also expected to recover full charges in a staggered manner. “We have been told it is not a waiver and hike has only been deferred,” an airline executive said of domestic ATF price relief.

Indian Oil Corporation said pricing in future shall depend upon the emerging situation.

“The ongoing conflict in West Asia will continue to weigh on the outlook of airlines. Airlines within Asia-Pacific could face thinner profit margins on escalating jet fuel prices, given limited fuel hedging across carriers in the region. Longer flights times from rerouting would also add to airlines’ operational expenses,” said Isabel Goh, an analyst at S&P Global Ratings.

Published on April 12, 2026