India’s domestic air passenger traffic fell 6.34% year-on-year to 121.26 lakh passengers in August 2026, according to data from the Directorate General of Civil Aviation (DGCA), while IndiGo retained its position as the country’s largest domestic airline with a 65% market share.
Domestic airlines carried approximately 1.21 crore passengers during the month, down from the corresponding period last year. The decline marks a contraction in passenger volumes even as the airline market remained concentrated among a small number of major carriers.
IndiGo carried 78.87 lakh passengers in August and accounted for 65% of the domestic market, according to the figures reported from the DGCA data. However, its share declined from 67.4% in July. The airline continued to lead the market by a wide margin despite the monthly reduction in its share.
The Air India group ranked second after carrying 32.32 lakh passengers and recording a 26.7% market share. Its share rose from 24% in July, an increase of 2.7 percentage points. The figures reflect the growing proportion of domestic traffic handled by the group compared with the previous month.
Akasa Air retained a 5.5% share of the domestic market and carried 6.68 lakh passengers in August. SpiceJet carried 1.40 lakh passengers and recorded a 1.2% market share during the month.
The airline-wise figures show that passenger traffic and market shares changed unevenly across carriers. While total domestic traffic declined compared with August last year, the Air India group increased its share from July and IndiGo remained the dominant operator. The available data does not establish the reasons for the year-on-year fall in passenger numbers.
The figures also point to differences in airline performance on on-time departures, according to the report based on the DGCA data. However, the supplied information does not provide the airline-wise punctuality numbers or identify the scale of the gap.
Domestic aviation demand is closely linked to the functioning of India’s inter-city transport network, including airport capacity, airline schedules and passenger connectivity between major urban centres. Any sustained change in traffic volumes can affect airport operations and the distribution of services among carriers, but the August figures alone do not indicate whether the decline is temporary or part of a longer trend.
The latest data places the next focus on subsequent DGCA traffic releases, which will show whether domestic passenger volumes recover and whether the monthly changes in airline market shares continue.
