India’s Domestic Aviation Growth Hits 11% as IndiGo, Akasa Air Gain Market Share

India’s domestic aviation sector witnessed an 11% surge in passenger traffic in January, reaching 1.46 crore flyers. IndiGo strengthened its lead at 65.2% market share, while Akasa Air gained slightly. Meanwhile, the Air India Group and SpiceJet saw declines, as per the Directorate General of Civil Aviation (DGCA) report, which was released on February 27, 2025.

IndiGo Strengthens Its Market Position

IndiGo continued to dominate the domestic airline market, increasing its market share from 64.4% in December 2024 to 65.2% in January. The Air India Group, comprising Air India, Air India Express, and Vistara, saw a slight decline in market share, dropping from 26.4% to 25.7%.

Other airlines showed mixed trends. Akasa Air registered a marginal rise in market share, growing from 4.6% to 4.7%, while SpiceJet’s market presence slightly dipped from 3.3% to 3.2%.

Declining On-Time Performance Across Airlines

Punctuality remained a challenge for all airlines in January, with none managing to exceed the 80% on-time performance (OTP) mark at major metro airports, including Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, and Kolkata.

IndiGo led the pack with a 75.5% OTP, followed by Akasa Air at 71.5%. The Air India Group posted a 69.8% OTP, while SpiceJet lagged at 54.8%.

High Flight Cancellations Impact Passengers

Flight cancellations remained a concern, with the overall cancellation rate for scheduled domestic flights reaching 1.62% in January. Among the worst performers, Fly Big recorded the highest cancellation rate at 17.74%, followed by Fly91 (5.09%) and Alliance Air (4.35%).

In total, 41,119 passengers were affected by cancellations, prompting airlines to compensate ₹46.46 lakh in refunds and facilities. Flight delays also took a toll, impacting 1,78,934 passengers and resulting in facilitation payouts amounting to ₹2.38 crore.

InterGlobe Aviation and SpiceJet Share Price Performance

On February 28, 2025, shares of InterGlobe Aviation Ltd (IndiGo) traded at ₹4,436.20 at 10:00 AM on the NSE, reflecting a slight decline of ₹7.20 (-0.16%) from the previous close of ₹4,443.40. The stock opened higher at ₹4,469.90, peaked at ₹4,498.20, and hit a low of ₹4,403.30.

Meanwhile, SpiceJet Ltd saw a more significant drop, trading at ₹43.45, down ₹1.27 (-2.84%) from its previous close of ₹44.72. The stock opened at ₹43.50, reached a high of ₹43.72, and dipped to a low of ₹42.50 on the BSE.

Conclusion

India’s aviation sector continues to show strong growth, with IndiGo extending its dominance in the market. However, declining on-time performance and a rise in cancellations indicate operational challenges that airlines must address to maintain customer satisfaction.

As the demand for domestic travel rises, improving efficiency and reliability will be key to sustaining this momentum.

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