IndiGo lost nearly four percentage points of domestic market share in December after mass flight cancellations and a sharp cut in daily departures, ceding ground to rival Air India Group, data released by the aviation regulator showed.
The country’s largest airline saw its market share fall to 59.6% in December from 63.6% in November, according to monthly traffic data from the Directorate General of Civil Aviation (DGCA). This marked IndiGo’s lowest monthly market share in the past two years.
By contrast, Tata-backed Air India Group gained over three percentage points during the month, emerging as the biggest beneficiary of IndiGo’s operational disruption.
December’s traffic data underscore how operational reliability is increasingly shaping competitive dynamics in India’s aviation market, with disruptions quickly translating into lost market share—even for the country’s dominant carrier.
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Disruption fallout
InterGlobe Aviaition-owned IndiGo suffered an operational meltdown in the first week of December with over 4500 flight cancellations, that left lakhs 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-time flying hour norms, forcing the Gurugram-based airline to cut scheduled domestic departures by about 10%.
The impact was visible for a second straight month. IndiGo had already lost around two percentage points of market share in November, even before the December disruptions peaked.
The market share erosion was largely expected given the scale and timing of the disruptions, said Mark D Martin, aviation expert and chief executive at Gurugram-based Martin Consulting.
“Cancellations began in November and peaked in December, creating a cascading effect. The roughly 2% loss in November widened to nearly 4% in December as the airline cut capacity, while full-service carriers like Air India gained—something clearly reflected in the market-share data,” he said.
Passenger numbers slide
Passenger volumes mirrored the loss in capacity. IndiGo carried 85.23 lakh passengers in December, down 12% sequentially from 96.93 lakh in November, and 11% lower year-on-year. The airline had ferried 96.15 lakh passengers in December 2024.
Despite the December decline, IndiGo still ended 2025 with a higher annual market share of 64%, compared with 61.9% in 2024, DGCA data showed.
On a full-year basis, the airline carried 1,068.64 lakh passengers in 2025, a 7% increase over 999.04 lakh passengers in 2024.
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Air India gains ground
The Air India Group, which includes Air India and Air India Express, recorded a 29.6% market share in December, up by three percentage points sequentially. This was the group’s highest monthly market share in the past 12 months, according to DGCA data.
For 2025, Air India Group ended with a 27% market share, marking its first full year of combined operations following the Tata Group’s consolidation of Air India and Air India Express.
SNV Aviation-owned Akasa Air, the country’s third-largest airline by revenue, maintained a 5.2% market share in December, broadly unchanged from the previous month. For 2025, Akasa’s market share stood at around 5.1%, compared with 4.6% in 2024.
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Overall, India’s domestic airlines carried 1,669.46 lakh passengers in 2025, reflecting a 3.48% growth over the previous year. However, the pace of growth has slowed sharply, nearly halving from the 6.12% growth recorded in 2024, when airlines carried 1,613.31 lakh passengers.
Martin added that the trajectory of recovery now bears watching.
“January also saw some cancellations, and IndiGo continues to operate at reduced capacity as directed by the DGCA. It will be interesting to see how much market share it recovers and whether Air India gains further, especially if passenger preferences begin to shift.”
