IndiGo has solidified its dominant position in the Indian aviation sector, recording its highest-ever market share of 66.3% in June. This surge coincides with significant capacity cuts announced by Air India across both domestic and international routes, according to the latest data from the Directorate General of Civil Aviation (DGCA).
Air India's Operational Downsizing
Air India, a Tata-run airline, carried 3.2 million passengers in June, marking its lowest count this year, a sharp decline from its peak of 4 million passengers in January. The airline has announced a network rationalisation strategy, which includes reducing operations until the end of August, following a substantial revenue loss of over ₹26,000 crore in the fiscal year 2025.
While Air India plans to reinstate its suspended domestic and international capacity from September, some routes, like those to Chicago and Washington, are expected to remain suspended due to ongoing aircraft availability challenges, confirmed Nipun Aggarwal, Chief Commercial and Transformation Officer at Air India.
IndiGo's Growth and Akasa Air's Ascent
IndiGo's strong performance saw it transport 8.92 million passengers in June. This figure, though slightly down from 9.9 million in May, still represents a robust operational month contributing to its record market share.
Meanwhile, Akasa Air also demonstrated strong growth, reaching its best-ever market share of 6.4% in June. The country’s youngest airline is rapidly expanding and plans to inject ₹10,000 crore into its operations. Akasa Air also reported the highest passenger load factor among domestic carriers at 92.2%.
Industry Challenges and Geopolitical Impact
The broader domestic aviation industry has been grappling with headwinds, primarily due to the adverse geopolitical situation. This has led to drastic capacity reductions in the Middle East sector during March and April, a region that contributes a significant portion of revenue for Indian carriers. Airlines like Air India Express and SpiceJet, for instance, deploy over 90% of their international capacity to the Gulf region, making them particularly vulnerable to such disruptions.