For Phuket property buyers relying on tourist rental yields, the question is not just whether flights are cut, but why — and whether the reason is temporary cost pressure or a deeper shift in demand patterns.
IndiGo, India’s largest airline, announced on Thursday that it will suspend flights to six international destinations from July 1, including Krabi, just 150 kilometres east of Phuket. The airline cited higher operating costs, airspace restrictions and softer seasonal demand for the cuts. Services to Langkawi, Ho Chi Minh City, Hong Kong and Shanghai will also stop from July 1, with Siem Reap suspended from July 3.
The move comes one week after IndiGo reported a fourth-quarter loss driven by higher jet fuel costs, according to the Bangkok Post. The airline plans to reopen bookings from October 1, or earlier if conditions improve.
Why the routes are being cut
IndiGo pointed to three factors: increased jet fuel prices, longer flight times due to airspace closures and reroutings linked to the Iran conflict, and Pakistan’s airspace ban on Indian carriers imposed during military tensions last year. These restrictions have increased flight times and operating costs across India’s international network.
The airline also noted that demand for the six destinations is traditionally softer during the third quarter, which runs from July through September. This suggests the cuts are at least partly seasonal and tactical, not necessarily a sign of structural weakness in travel to the Andaman region.
Despite the suspensions, IndiGo said it will continue operating more than 1,800 international flights per week. The airline’s CFO, Gaurav Negi, said in May that the company may consider fuel hedging amid ongoing geopolitical uncertainty.
Wider pressure on Indian carriers
IndiGo is not alone. Reuters reported last week that the airline had already cut planned domestic flights for June and July by 7-10%. Rival Air India has reduced domestic flights for the same period by 22%, and also scaled back several international routes in May, citing similar operational challenges.
The cuts reflect broader cost pressures across India’s aviation sector, not only route-specific demand issues.
What this means for Phuket property
Krabi and Phuket share much of the same tourist market, particularly from India. Indian visitor arrivals to Thailand have been a key growth story in recent years, and Indian buyers and renters have become increasingly visible in Phuket’s villa and condo rental market.
The suspension of direct flights to Krabi may shift some Indian travellers to Phuket, which has stronger airline service and more direct connections from major Indian cities. However, if the cuts reflect softer overall demand for the Andaman region during the low season, Phuket landlords may see similar pressure on rental bookings from Indian tourists during the same period.
The key detail is timing. The suspensions begin in July, which is already the start of the monsoon low season in Phuket. Demand typically softens across all source markets during this period, so the flight cuts may simply align with lower seasonal load factors rather than signalling a broader cooling in Indian tourist interest.
IndiGo’s plan to resume services from October — the start of high season — suggests the airline still sees long-term demand for the region. For property buyers and landlords focused on Indian rental demand, the more important question is whether direct flight capacity to Phuket itself remains stable or grows through the same period.
What remains uncertain
It is not yet clear whether IndiGo or other Indian carriers will adjust Phuket flight schedules in response to the Krabi cuts, or whether they will reduce capacity to Phuket as well. The airline has not announced changes to Phuket routes, but the broader 7-10% reduction in international flights for June and July suggests some trimming across the network is underway.
Fuel costs and airspace restrictions are external factors that could ease if geopolitical conditions stabilise. If they do, the October restart may happen as planned. If they do not, the suspensions could extend further into the high season, which would be more concerning for rental demand.
Buyers considering Phuket property with a rental strategy tied to Indian tourists should watch whether direct flight frequency from India to Phuket remains steady or increases during the fourth quarter, when IndiGo plans to resume regional routes.
Frequently Asked Questions
Does this affect flights to Phuket?
IndiGo has not announced cuts to Phuket routes. The airline suspended flights to Krabi, 150 kilometres from Phuket, along with five other destinations. However, IndiGo has reduced overall international capacity by 7-10% for June and July, so some trimming across the network is underway.
Why is IndiGo cutting these routes?
The airline cited higher jet fuel costs, longer flight times due to airspace restrictions from the Iran conflict and Pakistan’s airspace ban, and traditionally softer demand for these destinations during the July-September quarter. The cuts appear to reflect both cost pressure and seasonal demand patterns.
Could this signal weaker demand from Indian tourists?
Possibly, but not clearly. The airline noted that demand for the suspended routes is softer during the low season. IndiGo plans to resume services from October, which suggests it still sees long-term demand for the region. The more important signal for Phuket property would be whether direct Phuket flights also see cuts.
What does this mean for Phuket rental yields?
If Indian tourist arrivals to Phuket remain stable and direct flight capacity holds or grows, the Krabi cuts may have limited impact. However, if the cuts reflect broader cooling in Indian travel to the Andaman region during low season, landlords may see softer rental demand from Indian guests during the same period.
When will the routes resume?
IndiGo plans to reopen bookings from October 1, or earlier if conditions improve. This aligns with the start of Phuket’s high season, when tourist demand typically strengthens across all source markets.
Sources
- Phuket News — India’s IndiGo cuts six international routes, including Krabi — link
- Bangkok Post — cited in Phuket News article
- The Times of India — cited in Phuket News article
- Reuters — cited in Phuket News article
