India's domestic air passenger traffic declined 6.49 per cent month-on-month to 1.18 crore passengers in September 2026, according to data released by the Directorate General of Civil Aviation (DGCA). The drop extends a sequential slide that began in June and has deepened with each passing month, raising fresh questions about the pace of aviation recovery in the current financial year.

Market Share Breakdown

IndiGo retained its commanding lead, carrying 77.30 lakh passengers in September and holding a market share of 65.4 per cent — accounting for nearly two-thirds of all domestic air traffic. The Air India Group remained the second-largest carrier, flying 31.65 lakh passengers and securing a 26.8 per cent share. Together, the two airlines controlled more than 92 per cent of the domestic market.

Akasa Air held its position as the third-largest domestic carrier with 6.64 lakh passengers and a 5.6 per cent market share. SpiceJet continued to face significant headwinds, its share slipping to just 0.6 per cent after carrying approximately 73,000 passengers — a steep fall from 1.2 per cent in August when it had transported 1.40 lakh passengers.

A Worsening Sequential Trend

The September decline mirrors a comparable drop in August, when domestic traffic fell 6.34 per cent month-on-month to 1.21 crore passengers. The pattern over the current financial year paints a sobering picture: after a 5 per cent year-on-year fall in April 2026, traffic briefly rebounded with 9 per cent growth in May, only to weaken again. Traffic fell 1 per cent in June, 5 per cent in July, 6 per cent in August, and 7 per cent in September — a clear deterioration in momentum.

Notably, this comes after a sustained multi-year expansion. Domestic passenger traffic grew 13 per cent year-on-year in FY24, reaching 153.6 million passengers. Growth moderated to 7.7 per cent in FY25, when traffic touched 165.5 million, and slowed further to just 1.2 per cent in FY26, with passenger numbers edging up to 167.5 million. The current year's sequential declines suggest the sector may be entering a more sustained period of consolidation.

SpiceJet's Continued Struggle

SpiceJet's market share erosion is among the starkest developments in the data. From a 1.2 per cent share in August to 0.6 per cent in September, the airline's operational challenges — including fleet grounding and financial stress that have been widely reported — continue to shrink its footprint. This is the third consecutive month in which SpiceJet has posted a market share below 1.5 per cent, compared with the double-digit shares it commanded in earlier years.

What the Numbers Signal

The back-to-back monthly contractions across the industry — set against a backdrop of stable fuel prices and no major disruption event — point to softening consumer demand rather than supply-side constraints. Analysts and aviation observers will be watching October and November traffic figures closely, as the festive season typically provides a seasonal uplift. Whether that seasonal demand is sufficient to reverse the current trajectory will be a key indicator for the sector's near-term health.