India's domestic air passenger traffic fell 12% in June to 1.35 crore, compared to 1.53 crore in May. Despite the lower demand, IndiGo expanded its market share to 66.3%, while competitors like the Air India Group and SpiceJet saw their shares decline. Airlines paid out over ₹3 crore in compensation for flight delays and cancellations during the month.
Detailed Coverage
The Indian domestic aviation sector faced a cooling period in June, with overall passenger traffic dropping to 1.35 crore. This represents a 12% decline from the 1.53 crore passengers recorded in May. According to data from the Directorate General of Civil Aviation, this slowdown is consistent with seasonal travel patterns, as June often marks a quieter period following the peak summer months.
Airline Market Share Shifts
IndiGo continued to increase its lead, capturing 66.3% of the domestic market in June, rising from 64.9% in May. Conversely, the Air India Group saw its market share decrease to 23.9% from 25.6% over the same period. SpiceJet also faced challenges, with its share of the market falling to 1.9% from 2.5%.
Akasa Air showed growth in a difficult month, moving its market share up to 6.4% in June from 5.8% in May. While the monthly numbers reflect a clear decline, the year-to-date performance remains slightly positive. From January to June 2026, the sector recorded 864.04 lakh passengers, a 1.44% increase compared to the 851.74 lakh passengers seen in the same period last year.
Operational Challenges and Compensation
Operational reliability remained a key point of focus for investors, as airlines continued to manage network adjustments, partly due to sustained pressure from higher fuel costs. In terms of on-time performance, IndiGo led the sector at 89.4%, while the Air India Group followed at 85.9%. SpiceJet recorded a significantly lower on-time performance rate of 33.5%.
Financial strain on passengers and airlines was evident in the compensation data. The industry paid out approximately ₹2.85 crore to passengers affected by flight delays and an additional ₹61.98 lakh for cancellations. Furthermore, ₹64.84 lakh was paid to passengers denied boarding. With an overall cancellation rate of 0.63% across scheduled domestic airlines, these payouts remain a monitorable item for airline margins.
Investors may look to upcoming quarterly results to see how these market share shifts and the costs associated with operational delays impact the profitability of individual carriers. The industry’s ability to manage capacity while navigating fuel price volatility will be an important factor to track in the coming months.