IndiGo Reclaims Dominance As Domestic Air Traffic Surges 4.3% In January 2026

India’s domestic aviation sector witnessed a sharp correction in January 2026, as market leader IndiGo clawed back its lost territory, while the Air India Group saw its share retreat following a temporary spike. According to the latest data released by the Directorate General of Civil Aviation (DGCA), overall domestic air traffic grew by 4.36% sequentially, signalling a robust start to the new year.

IndiGo’s Strong Comeback

After a tumultuous December 2025, where massive operational disruptions caused IndiGo's market share to plummet to 59.6%, the budget carrier has staged a significant comeback. In January 2026, IndiGo regained its footing to capture 63.6% of the domestic market, effectively returning to its pre-crisis levels. The airline's recovery is attributed to a stabilisation of pilot schedules and the successful induction of new Airbus A321XLR aircraft, which bolstered its narrow-body capacity.

Air India Share Dips

On the other hand, the Air India Group saw its market share contract to 26.5% in January. This represents a nearly 3% drop from the 29.6% share it held in December 2025. Industry analysts suggest that Air India’s December peak was a windfall gain resulting from passengers migrating away from IndiGo during its operational crisis. As IndiGo restored its full schedule in January, the competitive landscape normalised, pulling the Tata-owned group back toward its long-term average.

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Other Airlines’ Market Share

Apart from the two major carriers, Akasa Air reported 4.8% market share, SpiceJet recorded 3.9%, Star Air 0.6%, Alliance Air 0.4% and Fly91 recorded 0.2% market share.

Passenger Growth, OTP Data

Indian domestic airlines carried 1.52 crore passengers in January against 1.46 crore in the same period last year, reporting a 4.36% growth. The on-time performance (OTP) jumped back to normal for a few Indian carriers in the domestic market as IndiGo, Air India group and Alliance Air reported 70.9%, 69.6% and 66.9% OTP respectively at the ten major airports. However, Akasa Air and SpiceJet reported 59.8% and 56.8% OTP at these airports.

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