India’s domestic airlines carried 1.18 crore passengers in September 2026, down 6.49% from August, while IndiGo strengthened its market share to 65.4%, according to data from the Directorate General of Civil Aviation (DGCA).
NEW DELHI: India’s domestic aviation sector recorded a decline in passenger traffic in September 2026, with scheduled airlines carrying 118.23 lakh passengers compared with 126.43 lakh in August. The 6.49% month-on-month fall comes as the sector experiences a moderation in passenger growth during the current financial year.
Despite the decline in overall traffic, IndiGo retained its position as India’s largest domestic airline, increasing its market share from 65% in August to 65.4% in September.
IndiGo Maintains Dominant Position in Domestic Aviation
IndiGo carried 77.30 lakh passengers during September, accounting for nearly two-thirds of the domestic aviation market. Its continued leadership underscores the airline’s substantial position in India’s scheduled domestic passenger segment.
The Air India Group, comprising Air India and Air India Express, ranked second, carrying 31.65 lakh passengers and securing a combined market share of 26.8%, marginally higher than the 26.7% recorded in August.
Together, IndiGo and the Air India Group accounted for 92.2% of domestic passenger traffic during the month.
Akasa Air maintained its position as the country’s third-largest domestic carrier, carrying 6.64 lakh passengers and recording a market share of 5.6%, compared with 5.5% in August.
SpiceJet, meanwhile, experienced a sharp contraction in its market presence. Its market share fell from 1.2% in August to 0.6% in September, with passenger numbers declining to approximately 73,000.
Domestic Passenger Traffic Declines During January–September
The weakness in September also affected the year-to-date performance of the sector. Domestic airlines carried 1,223.53 lakh passengers between January and September 2026, compared with 1,233.70 lakh during the corresponding period in 2025, representing a year-on-year decline of 0.82%.
The September contraction followed a 6.34% month-on-month decline in August, when domestic passenger traffic stood at approximately 1.21 crore.
The latest figures indicate that domestic passenger volumes have faced sustained pressure in recent months. However, the monthly decline alone does not establish whether the trend reflects a broader structural slowdown or temporary changes in travel demand and airline capacity.
Airline Operational Performance Shows Mixed Trends
Operational performance varied considerably among carriers in September. IndiGo recorded an on-time performance of 91.1% across the 10 major airports monitored by the DGCA, followed by Akasa Air at 90.8%. The Air India Group recorded 81.7%, while Alliance Air reported 75%.
SpiceJet recorded an on-time performance of 16.6%, significantly below the figures reported by other major carriers.
The overall cancellation rate among scheduled domestic airlines stood at 1.15% during September. The DGCA data also indicated that 108,783 passengers were affected by flight delays exceeding two hours, while 78,207 passengers were affected by cancellations.
Outlook for India’s Domestic Aviation Market
The September figures highlight the contrast between IndiGo’s continued market leadership and the wider industry’s declining passenger volumes. The Air India Group remains the second-largest player, while Akasa Air has maintained its position as the third-largest domestic carrier.
The coming months will provide further indications of whether passenger traffic stabilises and how market shares evolve across India’s increasingly concentrated domestic aviation sector.
