India’s aviation sector is on a stable path to recovery, with domestic air passenger traffic seeing a solid 11.04% increase in February 2025 compared to the same month last year
. Official data confirms that the aviation industry is regaining its momentum after the pandemic disruptions, contributing to overall optimism for future growth.
According to an ICRA report, domestic air traffic in India for the first 11 months of FY2024 reached around 1,551 lakh passengers, which is 7.7% higher than the previous year and 12.9% higher than pre-Covid levels.
Airlines are driving this strong performance through a consistent rise in demand for air travel, supported by an improved domestic network and competitive pricing.
The domestic traffic surge is in line with broader projections.
ICRA forecasts domestic air traffic growth of 7-10% for FY2025 and FY2026, maintaining optimism about the sector’s long-term potential despite some economic uncertainties.
Similarly, international passenger traffic has shown a remarkable 14.8% year-on-year increase, exceeding pre-Covid traffic by 41.3%.
The Directorate General of Civil Aviation (DGCA) reports that India’s scheduled domestic flight operators carried approximately 1.40 crore passengers in February 2025, up from 1.26 crore the previous year.
IndiGo continued to dominate the market, carrying 89.40 lakh passengers, capturing a significant 63.7% share of the market.
IndiGo’s market leadership is a reflection of its widespread domestic network, efficient operations, and competitive fares.
Following IndiGo, the Air India Group, which includes Air India Express and AIX Connect, transported 38.30 lakh passengers, accounting for a 27.3% market share.
Air India’s recent consolidations, including the merger of AIX Connect with Air India Express and Vistara’s merger with Air India in November 2024, have strengthened its position in the market.
The competitive landscape is also seeing the emergence of new players.
Akasa Air, which launched operations recently, transported 6.59 lakh passengers in February 2025, securing a 4.7% market share.
Despite facing challenges, SpiceJet also managed to transport 4.54 lakh passengers, holding a 3.2% share.
Smaller carriers such as Alliance Air and Star Air continue to serve niche routes, with Alliance Air carrying 0.86 lakh passengers (0.6% market share) and Star Air flying 0.60 lakh passengers (0.4% market share).
IndiGo’s performance has not been confined to the Indian market. It ranks as the world’s second-fastest-growing airline in terms of seat capacity, with a 10.1% year-on-year growth in 2024.
The airline is outpaced only by Qatar Airways, which recorded a 10.4% increase. Additionally, IndiGo leads the world in terms of flight frequency growth, with a 9.7% increase in 2024.
India’s aviation sector is experiencing sustained growth as both domestic and international passenger traffic continue to rise.
IndiGo’s continued dominance, coupled with the competitive environment in the Indian market, positions the sector for long-term success.
With moderate growth expectations for the next few years, India’s aviation industry remains a bright spot in the global travel landscape.
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