Why domestic, international airline capacity contracted 1.5% in August

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.