Domestic air traffic drops 6.5% in September; year-to-date passenger numbers turn negative

Domestic air passenger traffic in India declined 6.49% month-on-month in September 2026, with scheduled airlines carrying 118.23 lakh passengers compared with 126.43 lakh in August, according to the Directorate General of Civil Aviation’s (DGCA) latest traffic report. Passenger traffic during January–September also slipped 0.82% year-on-year to 1,223.53 lakh from 1,233.70 lakh in the corresponding period last year.

The decline raises questions about the trajectory of domestic air travel demand, although the monthly fall alone does not establish a slowdown. Seasonal patterns, changes in airline capacity, fares and passenger load factors will need to be examined to determine whether the decline reflects a temporary dip or a more persistent weakness.

IndiGo retains market leadership

IndiGo continued to dominate the domestic aviation market in September, carrying 77.30 lakh passengers and accounting for 65.4% of total traffic. Air India Group followed with 31.65 lakh passengers and a market share of 26.8%.

Akasa Air carried 6.64 lakh passengers, securing a 5.6% market share, while SpiceJet carried 0.73 lakh passengers, accounting for 0.6%. Star Air carried 0.79 lakh passengers, and Alliance Air transported 0.49 lakh.

The figures indicate that IndiGo and Air India Group together accounted for more than 92% of domestic passenger traffic during the month, underlining the concentration of the market among the two largest airline groups.

Passenger load factors show mixed trends

The passenger load factor, which measures the proportion of available seats filled by passengers, varied across airlines in September.

Akasa Air recorded the highest load factor at 88.1%, followed by IndiGo at 81.1% and Air India Group at 79.9%. SpiceJet’s load factor stood at 78.8%, while Fly91 recorded 77.6%.

Compared with August, the load factor improved for Air India Group, Akasa Air, Fly91, IndiaOne Air and Star Air. IndiGo and SpiceJet, however, recorded declines.

These figures provide some indication of how effectively airlines filled available seats, but do not establish whether overall capacity increased or decreased. Load factors also need to be considered alongside fares, operating costs and route-level performance to assess the financial implications for airlines.

What explains the decline?

The DGCA report does not identify the reasons behind the fall in passenger traffic. The September decline therefore cannot, by itself, be attributed to weaker travel demand.

A comparison with passenger traffic in September in previous years would help establish whether the decline reflects normal seasonal patterns or a departure from historical trends. Airline capacity deployment, average fares and route-level passenger volumes would also be important indicators.

The performance of individual airlines suggests that market conditions were not uniform. While IndiGo retained its dominant position, its passenger load factor fell to 81.1% from 79.2% in August? The passenger load factor improved for IndiGo, rising to 81.1% in September from 79.2% in August. Air India Group’s load factor increased to 79.9% from 77%, while Akasa Air recorded an improvement to 88.1% from 87.6%.

Overall, the September data point to a month-on-month contraction in domestic passenger traffic and a marginal decline in year-to-date volumes. Whether this marks a broader demand slowdown will depend on how traffic, fares and capacity evolve over the coming months.