India’s domestic air traffic witnessed a 7.33% increase in July 2024 compared to the same month last year, with 1.29 crore passengers flying, according to data released by the Directorate General of Civil Aviation (DGCA).
Despite the overall growth, the airline industry saw significant shifts in market shares, signalling heightened competition among carriers.
IndiGo Regains Market Share
After losing market share in June, IndiGo, India’s largest airline by market share, rebounded in July with a 120 basis points increase, raising its share to 62.8%. The airline transported 80.47 lakh passengers during the month. IndiGo’s performance marked a recovery from earlier in the year when it lost 160 basis points in January.
Fluctuations in Other Airlines’ Market Shares
While IndiGo gained, other airlines struggled. SpiceJet’s market share fell for the fourth consecutive month, dropping by 70 basis points to 3.1% as it carried 4.05 lakh passengers in July. Similarly, Air India’s market share fell by 30 basis points to 14.3%, while Air India Express and Akasa Air both saw 30 and 10 basis points declines, respectively.
On the other hand, Vistara saw positive momentum, with its market share rising by 30 basis points to 10%, marking its second consecutive month of growth. Vistara flew 12.94 lakh passengers in July.
Air India Express Leads in On-Time Performance
In terms of punctuality, Air India Express overtook Akasa Air and Vistara to become the most punctual airline in India in July, with an on-time performance rate of 70.3% across key metro airports. Vistara and Akasa Air followed closely. The overall on-time performance of airlines declined due to adverse weather and monsoon conditions, continuing a trend from previous months.
Passenger Load Factors and Cancellations
SpiceJet led in passenger load factor, or occupancy rate, with 90.3%, followed by Vistara (90%) and Akasa Air (86.4%). Akasa’s load factor, however, declined from previous months, marking a dip from its peak in February 2024 when it achieved a 92.4% load factor.
Cancellation rates rose across the board, with Indiaone Air recording the highest cancellation rate at 18%. Miscellaneous reasons, including weather and technical issues, were the leading causes of flight cancellations.
Compensation and Complaints
Airlines compensated passengers to the tune of Rs 5.62 crore in July due to denied boardings, flight delays, and cancellations. Around 1,154,770 passengers were affected by cancellations, while 320,302 passengers faced delays. Meanwhile, 1,097 passenger complaints were lodged in July, with most issues related to flight problems.
Outlook for Indian Aviation
While domestic air traffic growth in July 2024 remains robust, the competitive landscape continues to evolve with fluctuations in market shares. IndiGo remains the dominant player, but the market remains dynamic with ongoing challenges such as punctuality and operational efficiency that will test airlines in the months ahead.