Domestic air traffic declines in July; IndiGo gains market share, Air India group slips – CNBC TV18

India’s domestic air passenger traffic recorded a year-on-year decline in July 2025, marking the first contraction in months. Passenger numbers fell 2.9% to 126 lakh compared to 129.8 lakh in July 2024, according to the latest DGCA data.

Airlines also reported lower load factors versus the previous month. Air India group’s load factor dropped to 78.6% in July from 81.5% in June, while IndiGo slipped to 84.1% from 85.4%. Akasa Air posted 90.2% versus 91.4%, and SpiceJet recorded 84.2% against 85.2% in the same period.

On the market share front, IndiGo strengthened its dominance, rising to 65.2% in July from 64.5% in June. Akasa Air improved marginally to 5.5%, while SpiceJet edged up to 2%. In contrast, the Air India group saw its market share decline to 26.2% from 27.1%.

The data highlights both muted demand and capacity pressures, with IndiGo consolidating its lead in the domestic market even as overall air travel demand softened.

Airlines’ results

IndiGo’s parent InterGlobe Aviation Ltd posted a Q1FY26 consolidated net profit of ₹2,176 crore, down 20.2% YoY and below CNBC-TV18’s poll estimate of ₹2,484 crore. Revenue grew 4.7% YoY to ₹20,496 crore, missing expectations of ₹21,150 crore. EBITDA rose 1.3% to ₹5,226 crore, with operating margin slipping to 25.5% from 26.4% a year earlier.

Meanwhile, in FY25, Air India and Air India Express posted a combined loss before tax of ₹9,568.4 crore, according to provisional figures shared by the Civil Aviation Ministry. Akasa Air reported a pre-tax loss of ₹1,983.4 crore, while SpiceJet recorded a loss of ₹58.1 crore.