India has rapidly ascended to become the third-largest domestic airline market in the world, with 15.6 million seats in April 2024, up from eight million seats a decade ago. This growth, driven by a 6.9 per cent annual increase, has outpaced Brazil and Indonesia, trailing only the US and China. Notably, the country’s capacity expansion is the highest among major markets, with China following closely behind at 6.3 per cent annual growth.
Low-cost carriers (LCCs) dominate India’s aviation landscape, comprising 78.4 per cent of domestic airline capacity, the highest among the top five markets. IndiGo, the leading LCC, has significantly increased its market share from 32 per cent in 2014 to 62 per cent in 2024, growing at an impressive 13.9 per cent annually. This contrasts sharply with the rest of the market, which has seen a modest 0.7 per cent yearly growth.
India’s aviation sector has flourished, adding 83 new airports in the past decade, bringing the total to 157. On November 19, 2023, India recorded its highest single-day air traffic with 4,56,910 domestic passengers, a 7.4 per cent increase over pre-Covid levels. Additionally, the Digi Yatra initiative saw over 91 lakh passengers using its services, with more than 35 lakh app downloads in 2023.
