IndiGo, Air India Group Control Over 90% of Domestic Market as Passenger Growth Slows in H1

India's domestic aviation market expanded at a slower pace in the first half of 2026, with passenger traffic rising 1.44% year-on-year even as IndiGo and the Air India Group together controlled more than 90% of the market underscoring the growing concentration in the country's airline industry.

Domestic carriers flew 864.04 lakh passengers between January and June, compared with 851.74 lakh in the corresponding period last year, according to data released by the Ministry of Civil Aviation.

The latest figures also indicate that traffic growth lost some momentum toward the end of the period. Domestic airlines carried 134.64 lakh passengers in June, down from 136.04 lakh in May, marking a 1.03% sequential decline.

IndiGo Extends Market Leadership

InterGlobe Aviation-operated IndiGo remained the country's largest airline by a wide margin, flying 555.83 lakh passengers during the January-June period and capturing 64.3% of the domestic market.

The Air India Group ranked second, carrying 221.67 lakh passengers for a 25.7% market share.

Together, the two airline groups accounted for more than nine out of every ten domestic passengers, highlighting the increasingly concentrated nature of India's aviation market.

Among the remaining carriers, Akasa Air transported 47.42 lakh passengers to secure a 5.5% market share, while SpiceJet carried 28.10 lakh passengers, accounting for 3.3% of domestic traffic. Star Air, Alliance Air, Fly91 and Indiaone Air collectively made up a relatively small share of the market.

Akasa Leads on Capacity Utilisation

Although IndiGo remained the largest carrier by passenger numbers, Akasa Air recorded the highest passenger load factor in June at 92.2%, indicating the strongest seat utilisation among scheduled domestic airlines, according to Ministry’s data.

Meanwhile, SpiceJet posted a load factor of 87.8%, followed by the Air India Group at 85.5% and IndiGo at 85.1%. Star Air reported 75%, Fly91 73.2%, Alliance Air 61.7%, and Indiaone Air 59.3%.

The Passenger load factor measures the proportion of available seats occupied by passengers and is widely tracked as an indicator of operational efficiency.

Market Growth Remains Positive, But Momentum Softens

First-half data indicate that domestic air travel continues to expand, but at a more controlled pace than in recent years.

The sequential decline in passenger traffic in June also indicates that growth cannot continue to be consistent throughout the year, despite the fact that IndiGo continues to dominate the market and that Air India Group consolidates its position as the only other large-scale airline group.