Winning Bizness Desk
Mumbai.India's largest airline IndiGo has tightened its grip on the country's aviation market, reaching an all-time high domestic market share of 66.3% in June. Fresh data released by the Directorate General of Civil Aviation (DGCA) showed the carrier expanding its lead at a time when rival Air India reduced capacity across domestic and international routes.
The milestone comes alongside IndiGo's aggressive long-term expansion strategy, including a record agreement to acquire more than 1,000 CFM LEAP engines for its growing Airbus fleet. The twin developments underline the airline's ambition to strengthen its position in India while accelerating its transformation into a global carrier.
Passenger traffic reflects market leadership
DGCA data showed IndiGo carried 8.92 million passengers during June, reinforcing its position as India's undisputed market leader. The airline had flown 9.9 million passengers in May and 8.97 million in April, maintaining consistently high traffic levels despite seasonal fluctuations.
Its extensive route network, expanding fleet and strong operational reliability continue to support sustained growth across the domestic market.
Key June highlights include:
- Record domestic market share of 66.3%
- 8.92 million passengers carried during the month
- Continued leadership backed by fleet expansion and network strength
Air India cuts operations amid losses
Air India, owned by the Tata Group, witnessed one of its weakest months this year, carrying only 3.2 million passengers in June. The figure marks the airline's lowest monthly traffic of 2026, compared with its yearly peak of around 4 million passengers recorded in January.
The decline comes after the airline reported a revenue loss exceeding Rs 26,000 crore during FY25, prompting management to rationalise its network and temporarily reduce operations until the end of August.
Air India's Chief Commercial and Transformation Officer Nipun Aggarwal said suspended domestic and international capacity is expected to return from September. However, services to Chicago and Washington are likely to remain suspended because of aircraft availability constraints.
Akasa grows despite geopolitical headwinds
India's youngest scheduled airline, Akasa Air, also posted its strongest performance yet by achieving a 6.4% domestic market share in June. The carrier recorded the country's highest passenger load factor at 92.2%, indicating exceptional seat occupancy despite a challenging operating environment.
Key developments included:
- Record 6.4% market share
- Industry-leading 92.2% passenger load factor
- Plans to raise nearly Rs 10,000 crore for future expansion
The broader aviation industry, meanwhile, continues to face pressure from geopolitical tensions in the Middle East. Indian airlines had reduced flights on several Gulf routes during March and April as regional conflict disrupted operations. The Gulf remains a critical revenue market, with more than 90% of the international capacity of Air India Express and SpiceJet deployed in the region.
Record engine order signals long-term expansion
Looking beyond immediate market gains, IndiGo signed a landmark Memorandum of Understanding with CFM International to purchase more than 1,000 LEAP-1A engines for 510 Airbus A320neo family aircraft. The agreement is the largest single LEAP engine order ever placed by an airline in CFM's history.
The partnership also includes long-term material support and assistance in establishing IndiGo's upcoming Maintenance, Repair and Overhaul (MRO) facility in India, reducing dependence on overseas maintenance while ensuring uninterrupted spare parts supply.
The IndiGo-CFM partnership dates back nearly a decade. IndiGo first adopted CFM56-5B engines in 2016 before selecting LEAP-1A engines for its A320neo and A321neo fleets in 2019. Globally, more than 10,000 LEAP engines have already been delivered, while India has emerged as CFM's third-largest market, with five airlines operating over 400 LEAP-powered aircraft and nearly 2,000 additional engines in the order pipeline.
