In a positive sign for the Indian aviation industry, domestic airlines carried 14.5 million passengers in March 2025, marking a year-on-year (YoY) growth of 8.79%, as reported by the Directorate General of Civil Aviation (DGCA). The figure for March 2024 stood at 13.3 million, indicating sustained recovery and rising demand in the sector despite global economic uncertainties and fluctuating fuel prices.

According to the latest data, domestic carriers flew 14.542 million passengers in March 2025, up from 13.368 million in the same month last year. The month-on-month increase reflects robust consumer sentiment, improved connectivity, and growing penetration of tier-II and tier-III cities into the aviation grid.

IndiGo Commands Market Share, Tops Performance Metrics

InterGlobe Aviation Ltd.’s IndiGo retained its dominant market position by carrying 9.31 million passengers, capturing a commanding 64% share of India’s domestic aviation market. The airline also led in on-time performance (OTP), clocking an impressive 88.1%, further cementing its status as the most reliable domestic carrier.

Trailing IndiGo, the Air India Group—which includes Air India and Air India Express—carried 3.88 million passengers, amounting to a 26.7% market share. This is a significant number, especially as the Tata Group-backed airline pushes forward with its long-term modernization and merger strategy. The group recorded an OTP of 82%, slightly lower than its rivals, but still commendable given its expansive operations and recent integration efforts.

Other key players in the Indian skies included Akasa Air, which flew 7,20,000 passengers, achieving a 5% market share, and SpiceJet, with 4,80,000 passengers, holding a 3.3% market share. In terms of punctuality, Akasa Air followed closely behind IndiGo with an OTP of 86.9%, while SpiceJet lagged at 72.1%, highlighting operational and reliability challenges.

OTP Tracked from Major Airports

The DGCA’s OTP data was compiled from India’s four largest metro airports—Bengaluru, Delhi, Hyderabad, and Mumbai. These hubs serve as critical chokepoints for measuring airline performance due to their high traffic volume and operational complexity.

On-time performance has increasingly become a key metric for customers choosing between airlines, as punctuality plays a crucial role for both business and leisure travelers. With data showing IndiGo and Akasa Air leading this space, competition is intensifying not only on pricing and destinations but also service quality and operational efficiency.

Implications for the Sector

The steady rise in air passenger numbers suggests that India’s domestic aviation market is poised for further growth, even as geopolitical instability and oil price fluctuations present external risks. The consistently high performance of private carriers, particularly IndiGo and Akasa, indicates strong managerial efficiency and adaptability in a competitive environment.

Akasa Air, the newest entrant in the industry, continues to punch above its weight, showing rapid progress both in market share and on-time performance. SpiceJet, on the other hand, appears to be struggling with both market retention and operational efficiency, as reflected in its lowest OTP and relatively small share of passengers.

Year-on-Year Trend Analysis

The YoY increase of 8.79% in domestic passenger traffic is noteworthy, especially considering the global aviation industry is still grappling with post-pandemic aftershocks. Compared to many international markets, India’s aviation sector appears to be bouncing back faster, driven by strong domestic demand, increasing disposable incomes, and a surge in regional connectivity schemes such as UDAN.

Additionally, with the government pushing for greater infrastructure development—including new airports, expanded terminals, and improved air traffic control systems—capacity constraints are gradually easing, allowing airlines to operate more efficiently and scale up services.

Looking Ahead: Summer Surge and New Launches

Industry insiders anticipate a further uptick in domestic air travel in the upcoming summer months. Leisure travel, school vacations, and increasing corporate travel demand are expected to push April and May figures even higher.

Moreover, airline expansions, new route launches, and competitive airfare pricing are set to provide further stimulus. Air India’s fleet expansion, Akasa’s increasing footprint, and IndiGo’s international foray will be closely watched in the coming quarters as these factors contribute to traffic growth and industry restructuring.

Conclusion

The DGCA’s March 2025 data reaffirms that India remains one of the fastest-growing domestic aviation markets globally. The 8.79% YoY growth in passengers, strong market leadership by IndiGo, and impressive OTP performances across several carriers reflect a resilient industry on the rise.

While challenges remain, including rising fuel costs and global geopolitical tensions, the sector’s fundamentals remain robust. With proactive regulatory support, fleet modernisation, and growing regional connectivity, Indian aviation appears well-positioned to soar higher in the years to come.

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