Outlook Business Desk
Domestic air passenger traffic dropped 2.94% year-on-year in July, according to data from the Directorate General of Civil Aviation (DGCA). The fall came after the tragic Air India Ahmedabad plan crash in June, which claimed 260 lives and affected travel sentiment.
The data showed 1.26 crore domestic passengers flew in July 2025 compared with 1.29 crore a year earlier. The dip came as carriers adjusted capacity and operations amid heightened scrutiny of aircraft safety and compliance checks.
The Air India Group lost 1% market share during the month, flying 33.08 lakh passengers compared to June’s tally. The drop followed the airline’s decision to cut domestic capacity by 5% for detailed fleet inspections.
IndiGo reinforced its dominance in the aviation sector, lifting its market share to 65.2% from 64.5%. Yet, passenger numbers slipped to 82.15 lakh in July from 87.74 lakh in June, mirroring the wider slowdown in air traffic.
Meanwhile, Akasa Air and SpiceJet posted modest gains in market share, with Akasa inching up to 5.5% and SpiceJet improving to 2% on a month-on-month basis.
The load factor, or seat occupancy rate, declined across major carriers in July. Air India Group fell to 78.6% from 81.5% in June, while other airlines also reported reduced passenger loads, signalling weaker travel demand in July as compared to June.
IndiGo emerged as the most punctual airline in July, recording 91.4% on-time performance across six key metro airports — Delhi, Mumbai, Bengaluru, Hyderabad, Chennai and Kolkata.