Indigo Leading the Market Share of Aviation Sector; Air India, SpiceJet Losing Market Share Decline

The Indian skies are getting crowded, but one airline continues to stay far ahead of the pack—Indigo. According to DGCA data for May 2025, Indigo flew over 90 lakh passengers, capturing a massive 65% share of the domestic market. That’s not just dominance—that’s near-monopoly territory.

But the real story this month isn't just about Indigo.

Akasa Air Is Quietly Gaining Altitude

If you’ve flown recently, you might’ve noticed more Akasa planes at the gates. The airline, still new compared to the giants, is growing fast. In May, it carried 7.48 lakh passengers, bumping up its market share to 5%—a gain of 30 basis points month-over-month.

For an airline that started flying just a couple of years ago, this is a strong sign of growing passenger trust. The strategy? Likely a mix of newer aircraft, value pricing, and expanding to Tier-2 and Tier-3 cities.

Trouble Brewing for Air India Group?

Despite flying a healthy 37.22 lakh passengers, the Air India Group (including Air India and Vistara) lost 70 basis points of market share. That’s a meaningful drop for a legacy brand.

Whether it’s post-merger integration pains, customer experience issues, or competition from budget carriers—something’s not clicking. Air India’s revival was a big story last year, but if it continues to lose market share at this rate, that narrative may need a rewrite.

SpiceJet’s Struggles Continue

Things haven’t been easy for SpiceJet, and May was no different. The airline flew 3.4 lakh passengers but lost 20 basis points in market share. It’s stuck in a tough spot—financial stress, legal battles, and operational reliability are all weighing it down.

If there’s a turnaround in store, it hasn’t yet appeared in the numbers.

Small Players, Small Wins

Meanwhile, airlines like Fly91, IndiAOne Air, and Star Air are inching forward. Market share is still tiny—less than 1%—but they did register small gains. These airlines are banking on regional connectivity and underserved routes, and while their scale is limited, the progress is encouraging.

Market Share Movements – May 2025

Here’s how market share shifted this month:

Gained Market Share:

• Indigo: 50 bps
• Akasa Air: +30 bps
• Fly91, Star Air, IndiAOne: small but positive moves

Lost Market Share:

• Air India Group: -70 bps
• SpiceJet: -20 bps
• Alliance Air: -10 bps

Final Thoughts: A Clear Divide Is Emerging

The May 2025 numbers reveal something more profound than just passenger counts. They show a market divide:

• Big, efficient players like Indigo are getting bigger.
• Akasa is proving that there’s still room for a new airline—if you get it right.
• Older, legacy names are feeling the heat.

The Indian aviation race is no longer just about being big—it’s about being fast, nimble, and reliable. And right now, only a few airlines are ticking all those boxes.