Festive season revival? Indian airlines' capacity continues to shrink

The aviation market continues to see the impact of geopolitical challenges and growing losses, with both Air India and IndiGo further trimming their operations this month, according to recent data.

Data from aviation research firm OAG show that overall seat capacity of 22.7 million fell by 4.5%, with international capacity down 2.1% and domestic down 5.6%. The capacity was 23.5 million in August last month.
There were reports that the airlines are expected to ramp up capacity from September onwards ahead of the festival season in India.

Domestic capacity cut

Low-cost airlines dominate the Indian market, holding 69% of capacity with 15.7 million seats, a 4% decrease vs September 25. Full-service capacity is 7 million seats, having decreased by 5.4% year on year.

IndiGo's capacity in September 26 is 11.3 million seats. Nevertheless, capacity reduced by 4.5% (525,600 fewer seats). Air India (AI) is the second-biggest airline in India with 3.2 million seats, a 14% market share.

Air India (AI) capacity contracted again by 8.8% (309,000 fewer seats) in September 26 compared to last year. Air India Express (IX) also reduced capacity by 2.6% vs September 25, 68,000 fewer seats.

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Facing challenges with payment dues to lessors, SpiceJet reduced capacity at the fastest rate of 45.2%, 215,000 fewer seats.
Akasa Air and Emirates were the only airlines to increase capacity by 5% and 0.3%, respectively, vs September 25.

International routes

United Arab Emirates remains the busiest international market from India, despite a 5% reduction in capacity to 1.1 million seats. The country still represents 28% of the total international market.

Saudi Arabia is the next busiest international country, with a 9% market share and increased by 12% to 336,000 seats. Capacity reduced by 23% in Thailand to 238,000 seats, followed by Malaysia and Singapore, where capacity reduced by 13% and 12%, respectively.
Capacity continued to increase by 16% to 200,000 seats to the UK, the sixth busiest market, and it also increased to Italy by 194% to 42,000 seats in September 26.

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