Largest Indian airline’s overseas market share falls. Here’s why…

IndiGo, India’s biggest airline by market share, is seeing a decline in the international sector’s market share in the past few months amid a consolidation in its domestic presence. Meanwhile, Air India has regained the international market with respect to flight departures, according to the latest data assessment.

The analysis of H1FY27 data by the brokerage firm Equirus Securities shows that Air India Group’s international passenger share (Indian carrier) recovered to 46.8% (+275bps MoM, +18bps YoY) in September, narrowing the gap with IndiGo, whose share declined to 47.4% (-187bps MoM, +5bps YoY) in the wide-body aircraft.

IndiGo’s passenger share in the international sector has been in decline since June, when it peaked at 54% before falling to 47.4% last month. It has been rising for the Air India Group from 40.8% in June to 46.8% last month.

“IndiGo’s domestic passenger share rose to 65.2% in Sep 26, reinforcing its market leadership despite a sequential decline in traffic,” says the report.

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Wide-body operations

IndiGo has stopped its wide-body operations from October 25 with the return of six Boeing 787-9 damp-leased aircraft to Norwegian carrier Norse Atlantic.  These aircraft were deployed on London and European routes.

With geopolitical challenges, high jet fuel prices and dollar appreciation, the airline announced it was concluding its wide-body operations. The Mumbai-Manchester route will be operated by the Airbus A321XLR and services to and from London Heathrow will be discontinued until the delivery of its Airbus A350-900 aircraft.

Announcing its decision, IndiGo in July said: "Airspace constraints, elevated fuel costs and currency pressures have impacted route efficiency, schedule integrity, connectivity and overall competitiveness. These factors have created operational and economic challenges at a time when volatility across aviation markets has reduced industry-wide risk appetite, prompting a comprehensive review of the project and evaluation of possible alternative solutions."

The airline further said it remains committed to its long-term international expansion despite the decision. It has placed an order for 60 A350-900 wide body aircrafts with first delivery expected by early 2028.