Why domestic, international airline capacity contracted 1.5% in August
Indian carriers have cut down the capacity as part of their operational restructuring. Air India has said that it will resume some international sectors from September onwards
- Aug 12, 2026,
- Updated Aug 12, 2026 2:00 PM IST
Domestic and international airline capacity saw a drop this month compared to the same period last year. Overall capacity contracted by 1.5%, with international capacity reducing by 3.3% and domestic capacity reducing by 0.6%, according to recent data.
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Data from aviation research firm OAG shows low-cost airlines dominate the Indian market, holding 69% of capacity with 16.3 million seats, a 1.6% decrease compared to August 25. Full-service capacity is 7.2 million seats, having decreased by 1.2% year on year.
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IndiGo continues to hold the majority share of capacity in India with a 50% market share. IndiGo's capacity in August 26 is 11.7m seats.
Air India is the second-biggest airline in India with 3.3 million seats, a 14% market share. Air India capacity contracted again by 4.2%, 144,000 fewer seats in August 26 compared to last year.
Air India Express also reduced capacity by 8.4% compared to August 25, 228,000 fewer seats.
SpiceJet reduced capacity at the fastest rate of 16.6%, by 80,000 fewer seats. Akasa Air increased capacity at the fastest rate of 2.8%, by 8.48 lakh seats, with 23,000 additional seats.
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Middle East dominates
United Arab Emirates remains the busiest international market from India, despite a 4% reduction in capacity to 1.1 million seats. The market still represents 15% of the market. Saudi Arabia is the next busiest international country, with a 4% market share, increased by 7% to 331k seats.
Capacity reduced by 21% in Thailand to 250,000 seats, taking it from the third-busiest international destination. Capacity also reduced to Malaysia, Sri Lanka and Singapore by 22%, 13% and 10% respectively. Capacity continued to increase by 25% to 220,000 seats to the UK, making it the fifth busiest market.
Indian domestic carriers have cut capacity on international sectors as part of their operational restructuring, facing heavy losses.
Domestic and international airline capacity saw a drop this month compared to the same period last year. Overall capacity contracted by 1.5%, with international capacity reducing by 3.3% and domestic capacity reducing by 0.6%, according to recent data.
Don't Miss: Air India Phuket-Delhi pilot tests positive for marijuana; AAIB probes 300-ft altitude drop
Data from aviation research firm OAG shows low-cost airlines dominate the Indian market, holding 69% of capacity with 16.3 million seats, a 1.6% decrease compared to August 25. Full-service capacity is 7.2 million seats, having decreased by 1.2% year on year.
Must Read: Ahead of Tata Sons AGM, N Chandrasekaran resigns as chairman, to complete his term
IndiGo continues to hold the majority share of capacity in India with a 50% market share. IndiGo's capacity in August 26 is 11.7m seats.
Air India is the second-biggest airline in India with 3.3 million seats, a 14% market share. Air India capacity contracted again by 4.2%, 144,000 fewer seats in August 26 compared to last year.
Air India Express also reduced capacity by 8.4% compared to August 25, 228,000 fewer seats.
SpiceJet reduced capacity at the fastest rate of 16.6%, by 80,000 fewer seats. Akasa Air increased capacity at the fastest rate of 2.8%, by 8.48 lakh seats, with 23,000 additional seats.
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Middle East dominates
United Arab Emirates remains the busiest international market from India, despite a 4% reduction in capacity to 1.1 million seats. The market still represents 15% of the market. Saudi Arabia is the next busiest international country, with a 4% market share, increased by 7% to 331k seats.
Capacity reduced by 21% in Thailand to 250,000 seats, taking it from the third-busiest international destination. Capacity also reduced to Malaysia, Sri Lanka and Singapore by 22%, 13% and 10% respectively. Capacity continued to increase by 25% to 220,000 seats to the UK, making it the fifth busiest market.
Indian domestic carriers have cut capacity on international sectors as part of their operational restructuring, facing heavy losses.