IndiGo loses nearly 4% market share in December after flight disruption; Air India gains
Data released by the aviation regulator showed IndiGo lost nearly four percentage points in domestic market share in December, falling behind rival Air India Group, following mass flight cancellations and a sharp cut in daily departures.
According to monthly traffic data of the Directorate General of Civil Aviation (SHGM), the market share of the country’s largest airline fell from 63.6% in November to 59.6% in December. This marked IndiGo’s lowest monthly market share in the last two years.
In contrast, Tata-backed Air India Group emerged as the biggest beneficiary of IndiGo’s operational disruption, gaining over three percentage points during the month.
December traffic data underscores how operational reliability is increasingly shaping competitive dynamics in the Indian aviation market; disruptions quickly translate into loss of market share, even for the country’s dominant carrier.
outage fallout
InterGlobe Aviaition-owned IndiGo suffered an operational slump in the first week of December with more than 4,500 flights canceled, leaving hundreds of thousands of passengers stranded at airports across the country.
The mass cancellations were primarily triggered by the introduction of new pilot rest rules and stricter night flying time norms, forcing the Gurugram-based airline to reduce scheduled domestic flights by around 10%.
The effect was seen for the second month in a row. IndiGo had lost nearly two percentage points of market share in November, even before the disruptions peaked in December.
Mark D Martin, aviation expert and CEO of Gurugram-based Martin Consulting, said market share erosion was largely expected given the size and timing of the disruptions.
“Cancellations started in November and had a cascading effect, peaking in December. The roughly 2% loss in November increased to almost 4% in December as the airline reduced capacity, and full-service carriers like Air India gained; this is clearly reflected in the market share data,” he said.
Passenger numbers slide
Passenger volumes reflected the loss in capacity. IndiGo carried 85.23 lakh passengers in December, down 12% sequentially and 11% YoY from 96.93 lakh in November. The airline had carried 96.15 lakh passengers in December 2024.
Despite the decline in December, IndiGo finished 2025 with a higher annual market share of 64% compared to 61.9% in 2024, DGCA data showed.
On a full year basis, the airline carried 1,068.64 lakh passengers in 2025, up 7% from 999.04 lakh passengers in 2024.
Air India making progress
Air India Group, which includes Air India and Air India Express, recorded a market share of 29.6% in December, up three percentage points respectively. This was the group’s highest monthly market share in the last 12 months, according to DGCA data.
Air India Group ended 2025 with a 27% market share, marking the first full year of combined operations after the Tata Group merged Air India and Air India Express.
Akasa Air, owned by SNV Aviation, the country’s third largest airline in terms of revenue, maintained its market share of 5.2% in December, remaining largely unchanged from the previous month. Akasa’s market share stood at around 5.1% in 2025, compared to 4.6% in 2024.
Overall, India’s domestic airlines carried 1,669.46 lakh passengers in 2025; This reflects growth of 3.48% compared to the previous year. However, the pace of growth has slowed sharply, falling to almost half of the 6.12% growth recorded in 2024, when airlines carried 1,613.31 lakh passengers.
Martin added that the recovery trajectory now needs to be monitored.
“January also saw some cancellations and IndiGo continues to operate at reduced capacity as directed by DGCA. It will be interesting to see how much market share recovers and whether Air India gains more, especially if passenger preferences start changing.”
