In what is the worst slowdown in the Indian aviation industry since 2004, airlines have decided to withdraw 165 flights in the last four weeks, slashing their total capacity by around 10 per cent.

The reduction in capacity, which will come into effect this month, will see the total number of daily flights coming down from around 1,630 to around 1,465.

Low-cost carriers will prune their capacity more than that of full-service carriers. Low-cost carriers are cutting down their total number of flights, which were around 430 last month, by 14 per cent. Full-service carriers, which were flying around 1,200 flights, will bring down the capacity by around 8 per cent.

According to sources, GoAir has decreased its capacity from 1,000 flights to 800 from June to July. Earlier, the carrier had opted out of several cities like Pune, Kochi, Jaipur and Chennai.

JetLite will bring down its total flights from 150 to around 125 soon. The carrier has already cancelled around 15 flights and will scrap around 10 more in the coming months. JetLite has also temporarily cancelled its plans of starting international operation to destinations like Sharjah.

Delhi-based, low-cost carrier SpiceJet has begun the month with 100 flights, down from around 120 flights last month. Low-cost carrier IndiGo, which operated around 120 flights, said it was still reviewing a reduction in its capacity.

Full-service carrier Kingfisher-Deccan has stopped operating around 40 of its 500 flights, especially to short-haul destinations in the southern region. Meanwhile, Jet Airways [Get Quote] has cut down 10 per cent of its total 350 flights a day.

National carrier Air India has stopped operating around 20 out of its total 300 flights.

"The gap between demand and supply was a yawning 20 per cent due to excess capacity in the market. Fortunately, as a result of this slowdown, the gap will come down to 10 per cent. But now, after operations to less profitable cities have been done away with, airlines will have to look at cutting down flights in the metros also. Apart from Delhi and Mumbai, other metros like Chennai and Kolkata might be affected," said an industry expert.