India is now world’s third largest domestic airline market: Report

Fueled by robust growth in the aviation sector over the past decade, India has ascended to become the third-largest domestic airline market globally, up from the fifth position ten years ago. A decade ago, India was the smallest market among the top five, with around 8 million seats. Indonesia and Brazil were in fourth and third places respectively, with the US and China holding the top two spots.

Today, while the US and China remain the largest domestic aviation markets, India has surpassed Brazil and Indonesia to secure the third position, boasting an airline capacity of 15.6 million seats as of April 2024, according to OAG data.

India’s capacity growth rate has been the highest, with an average annual increase of 6.9 percent over the past ten years. “India is the fastest-growing market among the five major domestic markets considered. China follows closely with an annual growth rate of 6.3 percent between 2014 and 2024, whereas the US and Indonesia have experienced much smaller growth rates,” the data reveals.

The OAG report highlights another significant metric: the low-cost carrier (LCC) capacity share. In April 2024, LCCs accounted for 78.4 percent of domestic airline capacity in India, the highest share among the five major domestic markets.

“Over the past decade, IndiGo has nearly doubled its market share, growing from 32 percent of capacity in 2014 to 62 percent today. While the rest of the market has grown at an average of just 0.7 percent annually, IndiGo has achieved a domestic capacity growth rate of 13.9 percent per year,” the report notes.

India’s aviation sector has thrived under Prime Minister Narendra Modi’s leadership, setting the stage for the industry’s future over the next 25 years. On November 19 last year, Indian airlines transported 456,910 domestic passengers in a single day, the highest since the pandemic began, marking a 7.4 percent increase above pre-Covid averages, according to the Civil Aviation Ministry.

The government reports that the number of airports in India has risen from 74 to 157 over the past decade. Additionally, more than 9.1 million passengers utilised the Digi Yatra facility, and over 3.5 million users downloaded the app in 2023.