India’s domestic aviation sector showed resilience in early 2026, with passenger numbers remaining largely stable year-on-year despite a high base and external pressures.In February 2026, domestic passenger traffic stood at 14.1 million, flat compared to the same month last year. This came after strong demand during the Maha Kumbh in 2025.
Early trends for March 2026 suggest only modest 1% year-on-year growth, partly dampened by higher airfares following the introduction of fuel surcharges amid geopolitical tensions in the Middle East.Indigo continued to dominate the market, though its share slipped slightly to 63.1% in February. The Air India Group gained ground, increasing its market share to 27%, while Akasa and SpiceJet held steady at around 4.9% and 3.9% respectively.
Operational performance improved across most airlines. Passenger load factors (PLF) rose, with SpiceJet recording the biggest monthly gain to reach 89%. Indigo achieved the highest PLF at 89.6%, followed by Air India Group at 88.3%. Punctuality also got better, with Indigo leading at 80.1% on-time performance. Cancellation rates dropped significantly, particularly for Indigo, which fell sharply to just 0.13%.In a bid to prevent disruptions, India’s aviation regulator DGCA has approved a reduced summer 2026 schedule of around 23,000 weekly domestic flights — about 10% lower than last year.
This reflects constraints around aircraft and pilot availability. Indigo’s schedule is down 2% year-on-year, while Air India and SpiceJet have seen sharper cuts. Akasa, however, is expanding aggressively with a 22% rise in departures.Analysts note that actual operations could fall further due to rising fuel costs and foreign exchange pressures from the Middle East conflict, which may also affect demand through higher ticket prices. The DGCA has left room for additional flights later if capacity conditions improve.
