IndiGo Dominates India Domestic Air Market in First Half 2026

India's domestic airlines carried 864.04 lakh passengers during the first half of 2026, a 1.44 percent increase over the 851.74 lakh passengers flown during the same period in 2025. However, traffic declined in June 2026, falling to approximately 134.64 lakh passengers from 136.04 lakh in May. The Directorate General of Civil Aviation attributed this June contraction to the lean summer season, fuel price surges, and geopolitical conflict in West Asia.

InterGlobe Aviation, operating as IndiGo, dominated the market throughout the period. The airline held a 64.3 percent share for the first half of the year and reached a record 66.3 percent share in June alone. The Air India Group followed as the second-largest player with a 25.7 percent share for the first half, though its June share dipped to 23.9 percent. Air India implemented capacity cuts and network rationalization following a revenue loss exceeding Rs 26,000 crore in FY25.

Other carriers showed mixed results. Akasa Air recorded the highest passenger load factor in June at 92.2 percent and grew its market share to 6.4 percent. SpiceJet's share dropped to 1.9 percent in June after maintaining a 3.3 percent share for the first half of the year. Air India expects to restore most suspended capacity by September, although flights to Washington and Chicago remain suspended due to aircraft availability.