India has officially become the world’s third-largest domestic aviation market, behind the United States and China. Data from aviation analytics firm Official Airline Guide (OAG) indicated this huge shift, which was fuelled by robust fleet expansion by major carriers such as IndiGo and Air India. The country’s airlines have rapidly expanded to meet the growing demand for air travel.
In April 2024, India’s domestic airline capacity will be 15.5 million seats, up from 7.9 million seats a decade ago in April 2014. This expansion has propelled Brazil to fourth place, with 9.7 million seats, followed by Indonesia, which has 9.2 million.
India has also experienced the highest annual average capacity growth rate of 6.9% among the top five countries over the last 10 years. China experienced a 6.3% growth rate, while the United States saw a 2.4% increase.
India’s two largest airlines, IndiGo and Air India, currently account for nine out of every 10 domestic seats. According to the OAG, India has seen the fastest transition towards low-cost carriers (LCCs) of the top five markets.
In April 2024, LCCs accounted for 78.4% of India’s domestic airline capacity. This is significantly higher than Indonesia (68.4%) and Brazil (62.4%).
