India's Domestic Air Traffic Sees 9.49% Increase

India's domestic aviation sector has shown signs of recovery after two months of turbulence, with a significant increase in passenger volumes in May. According to the Directorate General of Civil Aviation (DGCA), Indian carriers transported 1.53 crore passengers in May 2026, recording a 9.49% increase compared to the same month last year. This surge in passenger traffic has pulled the industry's cumulative annual growth back from near-flat growth in April.

The major players in the domestic market, including IndiGo, Air India Group, Akasa Air, and SpiceJet, have reported an increase in passenger load factors, a critical metric of operational efficiency and seat occupancy. IndiGo continued to dominate the domestic market with a 63.3% share, followed by the Air India Group at 25.6% and Akasa Air at 5.8%. However, SpiceJet performed the worst in on-time performance among the five major airlines across the ten major airports, with only 26.5% of its total flights operating on time.

The sudden influx of vacationers has relieved the downward pressure on airline passenger load factors. The total domestic air traffic for the first five months of 2026 now stands at 7.29 crore passengers, lifting the cumulative annual growth rate to a healthier 1.9% compared to the corresponding period last year. The increase in passenger traffic has also led to an improvement in the load factor levels of the major airlines, with IndiGo reporting 86.4%, Air India Group reporting 83.5%, Akasa Air reporting 92.5%, and SpiceJet reporting 87.4%.

The recovery of the domestic aviation sector is a positive sign for the industry, which had been hit hard by escalating aviation turbine fuel (ATF) prices stemming from the geopolitical conflict in West Asia. The consecutive declines in March and April had effectively flatlined the industry's year-to-date trajectory, leaving cumulative growth at a microscopic 0.06% by the end of April. However, May's traffic boom has single-handedly salvaged the year-to-date numbers.

The increase in passenger traffic has also led to an increase in the number of passengers affected by cancellations and delays. In May, about 10,701 passengers were affected due to cancellations, whereas 46,481 passengers were affected due to delays of over two hours. Around 15.75% of SpiceJet's flights were delayed by more than two hours.

The outlook for the domestic aviation sector looks positive, with the industry expected to continue its growth trajectory in the coming months. The improvement in passenger load factors and the increase in passenger traffic are expected to have a positive impact on the industry's operational efficiency and revenue. However, the industry will need to continue to monitor the situation and adapt to any changes in the market to ensure sustained growth.

In terms of impact, the increase in passenger traffic is expected to have a positive impact on the economy, with the aviation sector being a significant contributor to the country's GDP. The growth in passenger traffic is also expected to lead to an increase in employment opportunities in the sector, which will have a positive impact on the job market. Overall, the recovery of the domestic aviation sector is a positive sign for the industry and the economy as a whole.

The domestic aviation sector is expected to continue its growth trajectory in the coming months, with the industry expected to benefit from the increase in passenger traffic. The major players in the sector, including IndiGo, Air India Group, Akasa Air, and SpiceJet, are expected to continue to dominate the market, with IndiGo expected to maintain its lead. However, the industry will need to continue to monitor the situation and adapt to any changes in the market to ensure sustained growth.

In conclusion, the domestic aviation sector has shown signs of recovery after two months of turbulence, with a significant increase in passenger volumes in May. The industry is expected to continue its growth trajectory in the coming months, with the major players in the sector expected to continue to dominate the market. The increase in passenger traffic is expected to have a positive impact on the economy and the job market, and the industry is expected to benefit from the growth in passenger traffic.