IndiGo's Market Share Dips Slightly as Indian Airlines See 3% Monthly Passenger Growth in June
Indian airlines transported 1.36 crore passengers in June, a 3% increase from May. IndiGo's market share slightly declined to 64.5%, while Air India Group increased to 27.1%. Akasa Air maintained 5.3%, and SpiceJet dropped to 1.9%. The sector showed 7.34% annual growth in the first half of 2023. Airlines faced operational challenges with a 0.93% flight cancellation rate, primarily due to technical issues. Delays and cancellations affected over 1.5 lakh passengers, resulting in significant compensation costs for airlines.

*this image is generated using AI for illustrative purposes only.
Indian airlines witnessed a notable uptick in passenger traffic in June, with the sector showing signs of continued recovery and growth. The latest data reveals interesting shifts in market dynamics among major carriers.
Passenger Growth and Market Share
Indian airlines transported 1.36 crore passengers in June, marking a 3.00% increase from 1.32 crore passengers in May. This growth is particularly significant when compared to the same period last year, indicating a positive trend in the aviation sector.
Interglobe Aviation , operating as IndiGo, the market leader, experienced a marginal decline in its market share, moving from 64.60% in May to 64.50% in June. Despite this slight dip, the airline continues to dominate the Indian aviation market.
In contrast, the Air India Group saw an increase in its market share, rising from 26.50% in May to 27.10% in June. This growth suggests potential gains in the group's competitive position.
Akasa Air maintained its market share at 5.30%, showing stability in its operations. However, SpiceJet faced challenges, with its market share dropping from 2.40% in May to 1.90% in June.
Year-to-Date Performance
The first half of the year has shown promising results for the Indian aviation sector. From January to June, domestic airlines carried 851.74 lakh passengers, compared to 793.48 lakh in the corresponding period last year. This represents a substantial 7.34% annual growth, indicating a robust recovery in air travel demand.
Operational Challenges
While the sector shows growth, airlines continue to face operational challenges:
- The flight cancellation rate in June stood at 0.93%.
- Technical issues were the primary reason for cancellations, accounting for 37.00% of all cases.
- Operational reasons and weather conditions followed, responsible for 25.00% and 22.40% of cancellations respectively.
Passenger Impact and Compensation
The disruptions in June had significant impacts on passengers and airline finances:
- Flight delays affected 1,20,023 passengers.
- Airlines spent Rs 1.68 crore on passenger facilitation due to delays.
- Cancellations impacted 33,333 passengers.
- Carriers paid Rs 72.40 lakh in compensation for cancellations.
These figures highlight the ongoing challenges in maintaining smooth operations and the financial implications for airlines in managing disruptions.
As the Indian aviation sector continues to grow, the coming months will be crucial in determining whether airlines can maintain this growth trajectory while improving operational efficiency and market positions.
Historical Stock Returns for Interglobe Aviation
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-0.70% | -0.99% | +2.91% | +38.97% | +30.93% | +543.06% |