IndiGo has emerged as the leader in the Indian domestic aviation market, recording its highest-ever market share, while Air India continues to experience a decline following its merger. According to data released for January 2025, the Indian domestic aviation market saw a passenger traffic of 146.11 lakh, marking an 11.2% increase compared to January 2024. However, this figure was slightly lower than the peak seen in December 2024.
Despite challenges, the Indian aviation market remains on a strong growth trajectory, with traffic in January 2025 being 2.5 times higher than in January 2015. This growth is a reflection of India’s booming domestic travel sector, which continues to expand rapidly. The consumption of Aviation Turbine Fuel (ATF) also reached a high of 784,000 metric tonnes in January, further highlighting the robust demand for air travel.
The market’s rapid expansion has coincided with higher load factors, even as airlines face constraints on capacity growth. This is largely due to supply chain issues affecting the induction of new aircraft, including the Boeing MAX8, and ongoing engine issues that have grounded a substantial portion of IndiGo’s fleet—up to 50 planes. Despite these operational hurdles, IndiGo’s efficient performance has propelled it to the top spot in market share, underscoring its dominance in the sector.
Meanwhile, Air India, which has been struggling after its merger, has seen a continued slip in its market share. The airline is working to stabilize its operations, but its performance has been impacted by the ongoing integration process and operational challenges. As the domestic aviation market grows, the competition between India’s top carriers remains fierce, with IndiGo leveraging its established network and operational efficiency to maintain its lead.