India's domestic aviation sector posted steady growth in the first half of 2026, with airlines collectively transporting 864.04 lakh passengers between January and June, a 1.44 per cent increase over the 851.74 lakh passengers carried during the same period in 2025, according to data released by the Ministry of Civil Aviation. The figures confirm continued expansion in air travel demand, even as monthly momentum showed signs of easing toward the mid-year mark.

Monthly Trend: June Dip Signals Moderation

After robust activity through the first five months, domestic airlines flew 134.64 lakh passengers in June 2026, down from 136.04 lakh in May — a sequential decline of 1.03 per cent. The moderation suggests some cooling of travel demand as the sector transitioned into the second half of the year. Analysts note that such month-on-month softness is not unusual heading into the post-summer period, when leisure travel typically tapers.

Market Share: IndiGo and Air India Dominate

IndiGo retained its commanding position as India's largest domestic carrier, flying 555.83 lakh passengers during the six-month period and holding a market share of 64.3 per cent. The Air India Group remained in second place, transporting 221.67 lakh passengers for a 25.7 per cent share. Together, the two groups accounted for more than 90 per cent of all domestic passenger traffic in H1 2026 — a concentration that underscores the duopoly-like structure of Indian aviation.

Among the remaining carriers, Akasa Air transported 47.42 lakh passengers, capturing a 5.5 per cent market share, while SpiceJet flew 28.10 lakh passengers, accounting for 3.3 per cent. Regional carriers continued to hold a marginal footprint: Star Air carried 5.03 lakh passengers (0.6 per cent), Alliance Air transported 3.47 lakh passengers (0.4 per cent), Fly91 flew 2.41 lakh passengers (0.3 per cent), and IndiaOne Air carried approximately 0.10 lakh passengers.

Load Factors: Akasa Leads Efficiency in June

Capacity utilisation data for June 2026 revealed notable variation across airlines. Akasa Air posted the highest passenger load factor at 92.2 per cent, meaning more than nine in every ten available seats were filled — a strong operational metric for the relatively young carrier. SpiceJet followed with a load factor of 87.8 per cent, while the Air India Group and IndiGo recorded 85.5 per cent and 85.1 per cent, respectively.

Regional carriers trailed the pack: Star Air reported a load factor of 75 per cent, Fly91 at 73.2 per cent, Alliance Air at 61.7 per cent, and IndiaOne Air at 59.3 per cent. The passenger load factor measures the proportion of available seats occupied by paying travellers and is a key indicator of airline profitability and route viability.

Outlook for H2 2026

The 1.44 per cent year-on-year growth in H1, while positive, is a moderation from the double-digit expansion rates seen in the post-pandemic rebound years. This comes amid rising operational costs, ongoing fleet constraints at some carriers, and the continued financial fragility of smaller airlines. Whether the sector can accelerate in the second half will depend on festive-season demand, fuel price trajectories, and the pace of new aircraft inductions by both legacy and low-cost carriers.