Sep 23: India’s domestic aviation sector saw a noticeable slowdown in August, with passenger traffic falling 6.34 per cent year-on-year to 121.26 lakh, according to data released by the Directorate General of Civil Aviation (DGCA).
Domestic airlines carried 129.47 lakh passengers in August 2025, compared with 121.26 lakh during the same month this year. The decline comes as airlines navigate changing travel demand and an increasingly competitive market.
For the first eight months of 2026, domestic airlines carried 1,105.30 lakh passengers, marginally lower than the 1,107.26 lakh recorded during the corresponding period of 2025. This translates into a year-on-year decline of 0.18 per cent, while the sharper monthly fall highlights the weaker traffic recorded in August.
IndiGo’s Market Share Eases
The August numbers also point to changes in the competitive landscape.
IndiGo continued to hold the largest share of the domestic market, but its market share declined to 65 per cent in August from 67.4 per cent in July, a sequential drop of 2.4 percentage points.
SpiceJet, meanwhile, saw its share fall to 1.2 per cent from 1.6 per cent in July, reflecting the continuing pressure on the airline.
In contrast, the Air India Group increased its market share to 26.7 per cent in August, up 2.7 percentage points from July. Akasa Air retained a 5.5 per cent market share during the month.
The movement in market shares indicates a more competitive domestic aviation landscape, with capacity deployment, network expansion and operational performance influencing passenger choices.
Flight Punctuality Remains a Key Factor
Operational performance remained relatively strong among the major carriers.
At the 10 major airports monitored by the DGCA, IndiGo recorded the highest On-Time Performance (OTP) of 91.5 per cent in August. Akasa Air followed with 90.5 per cent, while the Air India Group recorded an OTP of 83.9 per cent.
For passengers, punctuality remains an important part of the overall flying experience, particularly for business travellers and those making connecting journeys.
Cancellations Remain Under Watch
The overall cancellation rate of scheduled domestic airlines stood at 1.39 per cent during the month.
While the August traffic decline provides a softer snapshot for the sector, the relatively stable passenger numbers for the first eight months suggest that the broader domestic aviation market remains substantial. The industry’s performance in the coming months will depend on passenger demand, airline capacity, operational reliability and the ability of carriers to maintain efficient networks.
India’s aviation market continues to be an important part of the country’s wider travel, tourism and business ecosystem. Changes in passenger traffic and airline market shares will therefore remain closely watched by airlines, airports, investors and businesses connected to the aviation and travel sectors.
