India’s domestic aviation sector posted a modest growth of 1.89% in May 2025, with total passenger traffic reaching 140.56 lakh, according to data released by the Directorate General of Civil Aviation (DGCA). Market leader IndiGo maintained its stronghold with a 64% share, flying over 93 lakh passengers. Air India Group followed with 26.5% market share. Akasa Air and SpiceJet accounted for smaller fractions, at 5.3% and 2.4%, respectively. The report also highlighted operational performance, with IndiGo leading in on-time departures at 84%. The data underscores continued demand recovery, though the pace appears tempered compared to prior months.
Domestic Air Passenger Volume Rises in May
India’s civil aviation sector continued its upward trajectory in May 2025, albeit at a slower clip than earlier this year. The DGCA reported that 140.56 lakh domestic passengers took to the skies during the month, reflecting a year-on-year increase of 1.89% compared to 137.96 lakh in May 2024.
This growth, while positive, suggests a stabilization in post-pandemic travel demand, especially amid rising fuel prices and broader economic uncertainties that may have tempered discretionary travel.
IndiGo Dominates Market Share, Air India Holds Second Position
Budget airline IndiGo, India’s largest domestic carrier, once again emerged as the dominant force in the aviation market. The airline carried 93.09 lakh passengers in May, translating to a commanding 64% market share.
The Air India Group—which includes Air India and Vistara—secured the second-largest slice of the market, ferrying 37.22 lakh passengers, equal to a 26.5% market share. The merger process between Air India and Vistara, though ongoing, continues to give the group a considerable footprint across key domestic routes.
Akasa Air, a relatively new entrant, transported 7.48 lakh passengers during the period under review, achieving a market share of 5.3%. Meanwhile, SpiceJet, despite financial hurdles, carried 3.40 lakh passengers, accounting for a 2.4% market share.
On-Time Performance: IndiGo Leads Operational Reliability
Operational efficiency remains a key metric in the competitive aviation sector, particularly as passenger expectations rise. In May 2025, IndiGo topped the charts in on-time performance (OTP) with an 84% punctuality rate across six major Indian airports—Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, and Kolkata.
Air India followed closely, registering a 79.7% OTP. These figures suggest that both major carriers have made significant strides in operational logistics and ground handling, critical factors in ensuring customer loyalty and minimizing turnaround times.
Sector Outlook: Stability Amid Competitive Pressures
While the 1.89% growth rate appears modest in comparison to previous post-pandemic rebounds, the sector remains resilient. Increased passenger loads, robust performance by market leaders, and improving service metrics collectively suggest a period of consolidation and sustained demand.
However, the growth is occurring against a backdrop of tightening margins, fluctuating fuel prices, and intensified competition, especially from newer carriers looking to disrupt the duopoly of IndiGo and Air India. Smaller players like Akasa Air are gaining ground but face the challenge of sustaining expansion in a price-sensitive environment.
Conclusion: Measured Growth Reflects Sector Maturity
India’s domestic aviation industry, once marked by erratic demand and financial volatility, is now demonstrating signs of maturity and operational discipline. The DGCA’s May 2025 data underscores both the resilience and challenges of the sector—continued dominance by established players, improving efficiency metrics, and cautious yet steady growth in passenger volumes.
As airlines prepare for the monsoon and upcoming festival seasons, attention will likely turn to pricing strategy, route optimization, and the performance of emerging competitors. For now, IndiGo and Air India remain firmly in control of India’s skies.
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