The Indian aviation landscape has seen a significant consolidation recently, with the number of active scheduled airlines dropping from 17 down to 11 in just three years. This sharp decline was highlighted in a written response by the Ministry of Civil Aviation to a query raised in the Rajya Sabha.
The data underscores the intense financial and operational pressures facing domestic carriers despite a post-pandemic surge in passenger traffic. According to the government, the number of scheduled commuter airlines operating in India in 2021 was 15, which dropped down to 14 in 2022 but increased to 17 in 2023. However, the number dropped down to 12 in 2025 and then further to 11 in 2026.
The data was shared by the minister of state for civil aviation Murlidhar Mohol in the Rajya Sabha on Monday in a reply to a question asked by member of parliament Prakash Baraik. The data highlighted that TruJet, operated by Turbo Megha Airways, closed down on May 11, 2022, after the airline was left with no aircraft as the aircraft were taken back by the lessor. Go Airlines (India) was shut down on May 2, 2023, due to insolvency proceedings initiated against it.
Air Asia, which was operating from May 2014, was merged into Air India Express from October 2024 while Tata SIA Airlines merged into Air India from November 2024. The last airline that shut down in India was Fly Big, operated by Big Charter, which closed down on December 13, 2025, after aircraft were withdrawn by the lessor following financial issues with the operator.
Aviation analysts identify several critical factors that lead to airlines shutting down. Chief among these are persistent financial constraints and an inability to maintain sustainable cash flows. The high cost of aviation turbine fuel (ATF), coupled with the weakening of the Indian Rupee against the US Dollar, has significantly inflated operational expenses for smaller players in the past few years.
Beyond macroeconomics, operational and technical challenges act as primary drivers for the closures. Some Indian airlines have faced grounding due to engine supply chain issues, while others have struggled with management disputes and a failure to meet regulatory safety requirements.
While the number of players has shrunk, the remaining 11 airlines are currently catering to a growing demand. However, the exit of regional and budget carriers like Go First has raised concerns regarding airfare volatility and reduced connectivity on certain regional routes.
