India’s domestic aviation sector registered a 6.34% year-on-year drop in air passenger traffic in August 2026, totaling 1.21 crore passengers, according to figures released by the Directorate General of Civil Aviation (DGCA).
The monthly contraction came alongside noticeable shifts in market share among key domestic carriers. While market leader IndiGo saw a minor drop in its share, budget carrier SpiceJet continued to lose ground due to ongoing operational disruptions.
AUGUST MARKET SHARE & PASSENGER VOLUME
+------------------+---------------------+---------------------+----------------------+
| Airline | July Market Share | August Market Share | Passengers Carried |
+------------------+---------------------+---------------------+----------------------+
| IndiGo | 67.4% | 65.0% | 78.87 Lakh |
| Air India Group | 24.0% | 26.7% | 32.32 Lakh |
| Akasa Air | 5.5% | 5.5% | 6.68 Lakh |
| SpiceJet | 1.6% | 1.2% | 1.40 Lakh |
+------------------+---------------------+---------------------+----------------------+
How Major Indian Carriers Performed
Domestic Air Traffic Dips: Despite losing 2.4 percentage points of market share month-on-month, IndiGo maintained its dominant position in the Indian skies, flying 78.87 lakh passengers in August.
Meanwhile, the Air India group expanded its presence, boosting its market share from 24% in July to 26.7% in August while transporting 32.32 lakh travelers.
Akasa Air held steady in third place, retaining a 5.5% market share and carrying 6.68 lakh passengers. On the other end of the spectrum, SpiceJet’s share contracted to 1.2% from 1.6% in July, with the airline carrying 1.40 lakh passengers amid widespread flight delays and operational issues.
On-Time Performance & Regulatory Oversight
Domestic Air Traffic Update: IndiGo led major carriers in operational punctuality, posting the highest On-Time Performance (OTP) at 91% for August. Akasa Air followed closely with an OTP of 90.5%, while the Air India group recorded 83.9%. Regional operator Alliance Air logged an OTP of 71.8%.
AIRLINE ON-TIME PERFORMANCE (AUG 2026)
+-----------------------------------+-------------------------------------------------+
| IndiGo | [=======================================] 91.0% |
| Akasa Air | [======================================] 90.5% |
| Air India Group | [===============================>] 83.9% |
| Alliance Air | [====================>] 71.8% |
+-----------------------------------+-------------------------------------------------+
Amid SpiceJet’s operational headwinds, Civil Aviation Minister K. Ram Mohan Naidu confirmed that the aviation regulator is stepping in. The DGCA has been directed to perform an in-depth audit of SpiceJet’s operational and financial health to safeguard flight safety and service reliability across Indian airspace.
