Less than 30 per cent SpiceJet domestic flights took off on time last month: DGCA data, BA

High airfares have slowed down Indian domestic aviation’s growth post 2021. Last month, almost 1.3 crore people flew within the country, which is 7.3% more than July 2023, according to DGCA data. In the first seven months of this year, 9.2 crore domestic flyers were recorded, a 4.7% increase from the same period in 2023.

IndiGo’s market share reached a high of 62% last month, while the combined market share of Air India, Vistara, and AI Express was 28.5%.

SpiceJet’s domestic market share in July 2024 dropped to 3.1% due to various issues, including delays and unpaid lessors seeking to repossess planes and engines.

The aviation landscape in India has shifted towards pricing discipline, with two dominant airlines, Tata-backed Air India-led group and IndiGo, holding 91% of the market share. This has put an end to the era of low airfares offered by financially weak airlines.

The collapse of GoAir, grounding of IndiGo planes, and other challenges have led to a demand-supply mismatch and increased pricing pressure for flyers.