MC EXCLUSIVE Domestic airlines see rise in cancellations, rescheduling after Ahmedabad crash

The crash is expected to have a multi-dimensional impact. Immediate consequences include – short-term drop in bookings for regional and budget carriers operating Boeing aircraft. Tourism-heavy states like Gujarat, Rajasthan, and Goa may see marginal cancellations from inbound flyers.

Domestic airlines in India have witnessed a 15-20 percent rise in cancellations following the crash of Air India flight AI 171 on June 12 as domestic passengers are rescheduling flights to avoid flying on Boeing aircraft while some are avoiding air travel, senior executives from a domestic carriers told Moneycontrol.

"Any major incident like the Air India Ahmedabad crash is bound to have a temporary impact on the travel sentiment associated with the mode of travel, we have seen it in the past year with train accidents, bus crashes and a similar impact is being felt by airlines in India," a senior executive from a Gurugram based carrier told Moneycontrol.

AI sees highest cancellations

He added that while all domestic airlines in India were facing a rise in flight cancellations, Air India was experiencing the highest rise in cancellations following the unfortunate June 12 incident.

"If you look at the daily passenger traffic data shared by MoCA (Ministry of Civil Aviation) daily airport footfall across India have fallen from an average of 9.9 lakh passengers till the first week of June 2025 to around 9.6 lakh passengers after the June 12 crash," the executive said.

Data from the MoCA shows that Indian airports saw footfalls of 10.16 lakh, 9.92 lakh, 9.94 lakh and 9.83 lakh on June 6, June 7, June 8 and June 9, respectively, but saw footfalls fall to 9.79 lakh, 9.79 lakh and 9.51 lakh on June 13, June 14 and June 15, respectively.

In the light of the Ahmedabad air tragedy, Air India had reportedly announced a one-time waiver on rescheduling and cancellation. Passengers who booked Air India flights on or before June 12, 2025 for travel to or from Ahmedabad between June 12 and 14, 2025 are reportedly applicable for the waiver.

These Air India fliers are now at liberty to reschedule their travel without paying any additional charges or fare difference. There is news of relief for those reconsidering their travel plans in the light of the disaster. Passengers who decide not to make the trip will not have to pay any cancellation charges, as Air India will be waiving the full fee for cancelling their tickets.

Another official from another Gurugram-based carrier told Moneycontrol that domestic travel sentiment is expected to remain muted throughout June as safety during travel is one of the largest concerns passengers worry about when flying.

"Passenger safety, reassuring passengers and proving to travellers that their safety is the utmost priority of all Indian airlines at the moment. Passenger traffic numbers are likely to be subdued for at least another month until airlines can win back the trust of passengers," the second executive said.

Other than the the crash, the closure and disruption of services at the the Ahmedabad airport and the Directorate General of Civil Aviation (DGCA) ordered audit of Boeing 787 aircraft is also weighing on fliers' minds. He, however, expects cancellations to stabilise over the next couple of weeks.

Fliers worried, rethinking non-essential travel

However, domestic travel agents are not so optimistic, particularly because the incident occurred during peak summer travel and has shaken traveller confidence, said Dr Vandana Singh Chairperson Aviation Cargo, Federation of Aviation Industry in India (FAII).

She added that such high-visibility incidents prompt emotional and psychological responses.

"Indian passengers, especially families, are reconsidering non-essential travel and even choosing rail alternatives for shorter distances. Internationally, India-bound traffic may witness a temporary dip of 4–6 percent over the next two weeks, especially among tourists with flexible travel plans."

After the crash of Air India flight AI171 in Ahmedabad, many people turned to Google to find answers and learn more about what had happened. Searches for “Air India flight cancellation” are soaring in India, increasing by 1000 percent between 13:30 IST to 14:30 IST on June 12.

Interest in the topic continued to rise throughout the day, ending with a 610 percent increase by 21:30 IST. This showed that people were worried and unsure about flying. The following morning, search interest grew again, reaching 670 percent higher by 08:30 IST and 760 percent higher by 12:30 IST. Even on June 14, there was still a noticeable interest, with a 500 percent rise between 11:30 IST and 12:30 IST.

Aviation-related search terms, many of which had seen little activity in the days leading up to the crash, suddenly saw enormous jumps. The word ‘cadaver‘, likely driven by reports of fatalities and identification challenges, saw over a 600 percent surge in search interest. ‘Boeing 737', the aircraft model at the centre of the crash, rose by 500 percent, as did ‘black box‘, ‘aircraft cabin‘, and ‘flight number‘, signalling an appetite for technical insight associated with the crash investigations.

Other prominent searches that recorded a significant hike include ‘AI171‘, ‘DGCA investigation‘, ‘flight data recorder‘ and ‘black box found‘.

Boeing worries

According to Singh, the crash will have a multi-dimensional impact. Immediate consequences include – short-term drop in bookings for regional and budget carriers operating Boeing aircraft. Tourism-heavy states like Gujarat, Rajasthan, and Goa may see marginal cancellations from inbound flyers. Aviation insurance premiums and airline operational costs may increase due to intensified safety protocols. Cargo operations, particularly pharma and textiles from Gujarat, will also take a temporary hit due to reduced lift capacity from Ahmedabad.

She also noted the visible ripple effect in the wake of the Ahmedabad crash involving a Boeing 737.

"Airlines such as SpiceJet, Akasa, and Air India, all of which operate Boeing fleets, have initiated internal reviews and heightened safety checks. While no blanket grounding has occurred, we are seeing operational disruptions. As per initial reports until mid-day (June 13), over 24 flights from these carriers were either delayed or cancelled from Ahmedabad, Delhi, and Mumbai combined, citing operational and safety review reasons. This number could rise as DGCA audits progress. Airlines are also reallocating aircraft to manage capacity while investigations continue."

Deepak Nangla, Managing Director, Premier by Brightsun noted schedule changes for some of the routes after the plane crash including Air India sectors like ATQ (Amritsar International Airport) to LHR (London Heathrow Airport) and DEL (Delhi) to LHR due to technical reasons on June 13, LGW (London Gatwick Airport) to AMD (Ahmedabad Airport) on June 27 which remains unscheduled.

The incident has impacted brand Air India, said  Harish Khatri, Founder and Managing Director at India Assist, a ground assistance platform for travellers across India.

"Even if investigations later reveal systemic or third-party causes, the company’s brand is negatively impacted . Public perception tends to assign accountability immediately. Air India has made significant strides in brand rebuilding post-privatisation, and a tragedy of this scale tests that progress," he said.

The psychological impact of such tragic incidents is significant, said Jyoti Mayal, Chairperson of Tourism and Hospitality Skill Council, adding that short-term sentiment typically dips, especially for routes associated with the incident.

"The most immediate effect will be felt in domestic aviation and inbound travel to Gujarat. Ahmedabad, being a major transit point for business and leisure travellers, may witness a temporary slowdown in hotel bookings, transport services, and related tourism businesses. The ripple effect could extend to nearby tourism circuits like Rann of Kutch and Dwarka."