Domestic air passenger traffic in India experienced a significant downturn in September 2026, dropping 6.49% month-on-month to 118.23 lakh passengers. This decline pushed the year-to-date passenger numbers for January to September into negative territory, registering a 0.82% fall compared to the same period last year, according to the latest traffic report from the Directorate General of Civil Aviation (DGCA).
The cumulative passenger count for January-September stood at 1,223.53 lakh, down from 1,233.70 lakh in the corresponding period of the previous year. This shift has prompted questions about the underlying health of domestic air travel demand, though experts caution that a single month's data does not definitively indicate a prolonged slowdown, potentially reflecting seasonal patterns.
Market Share Dominated by Two Major Players
Despite the overall decline, market concentration remained high, with IndiGo and Air India Group accounting for over 92% of domestic passenger traffic in September. IndiGo maintained its leadership position, carrying 77.30 lakh passengers and securing a 65.4% market share. The Air India Group followed with 31.65 lakh passengers, capturing 26.8% of the market.
Other airlines held smaller shares, with Akasa Air carrying 6.64 lakh passengers (5.6%), SpiceJet 0.73 lakh (0.6%), Star Air 0.79 lakh, and Alliance Air 0.49 lakh passengers during the month.
Mixed Trends in Passenger Load Factors
Passenger load factors (PLF), which measure the percentage of available seats filled, showed varied performance across carriers in September. Akasa Air reported the highest PLF at 88.1%, indicating efficient seat utilization. IndiGo recorded a PLF of 81.1%, while the Air India Group stood at 79.9%. SpiceJet’s load factor was 78.8%, and Fly91 registered 77.6%.
Compared to August, load factors improved for Air India Group, Akasa Air, Fly91, IndiaOne Air, and Star Air. However, IndiGo and SpiceJet experienced declines in their load factors. These figures offer insights into how effectively airlines filled their seats, but do not necessarily reflect changes in overall capacity or financial performance without considering fares and operating costs.
Uncertainty Surrounds Reasons for Decline
The DGCA report did not specify the reasons behind the fall in passenger traffic, making it difficult to attribute the September decline solely to weaker travel demand. Analysts suggest that a comprehensive assessment would require examining historical September traffic data to distinguish between normal seasonal fluctuations and a more persistent weakening of demand. Factors such as airline capacity deployment, average fares, and route-level passenger volumes would also be crucial indicators to consider in the coming months.