Who Rules the Skies of India? Best Airlines in India by Market Share

India's aviation industry is one of the fastest-growing in the world, with millions of passengers flying every year. With increasing competition, Indian airlines are battling to dominate the market. But the question is, which airline truly rules the skies of India? In this article, we'll analyze the best airlines in India based on their market share, performance, and passenger preferences.

Best Airlines in India based on their Market Share

The Indian airline industry has seen rapid growth in recent years, thanks to increasing domestic and international travel demand. According to the Directorate General of Civil Aviation (DGCA), India's air passenger traffic has been consistently rising. Airlines are competing aggressively on prices, service quality, and route expansion to secure a larger share of this booming market.

Top Airlines in India by Market Share (Latest Data)

Before proceeding, let's understand what market share means. Market share is the percentage of total sales in an industry generated by a particular company. It is calculated by dividing the company's sales over a certain period by the industry's total sales during the same period. This metric gives a general idea of a company's size in relation to its market and competitors.

Hence, Market share in aviation refers to the percentage of total passenger traffic handled by an airline, Here's a look at the top airlines in India based on recent statistics: 

1. IndiGo – The Undisputed Market Leader

• Market Share: Around 63.6% (as per the latest DGCA reports)
• Why it dominates: Affordable fares, extensive domestic and international routes, and reliable on-time performance.
• Strengths: Largest fleet, strong financial backing, excellent connectivity.

BLOG BY BUSINESS-STANDARD| IndiGo leads Indian aviation with record 10 million passengers in November

2. Air India & Vistara – The Premium Challenger

• Market Share: Around 25% (combined after merger with Vistara)
• Why it stands out: Full-service airline offering premium international and domestic flights.
• Strengths: Government backing, global connectivity, luxurious services.

3. SpiceJet – Budget Airline with Challenges

• Market Share: Approximately 5%
• Why it’s notable: Known for affordable pricing and strategic domestic routes.
• Challenges: Financial difficulties, and operational inconsistencies.

4. Akasa Air – The Rising Star

• Market Share: Around 5%
• Why it’s growing: New entrant with modern fleet and expansion plans.
• Strengths: Competitive pricing, fresh brand appeal, steady growth.

[Disclaimer: This data is up to Jan 2025 and it may change over time. Readers should check the latest reports for updated statistics.]

What factors determine Airline Market Share?

Several factors influence an airline's market dominance in India:

• Pricing Strategy: Affordable fares attract more passengers.
• On-Time Performance: Punctuality enhances passenger trust.
• Fleet Size and Network: More flights and destinations boost market share.
• Financial Health: A well-funded airline can expand and sustain operations better.

What are the challenges in the Indian Aviation Industry?

Despite its growth, the Indian airline sector faces numerous challenges:

• Rising Fuel Costs: Aviation fuel prices impact operational costs.
• Intense Competition: Budget airlines are driving price wars.
• Infrastructure Issues: Congested airports and air traffic limitations.
• Financial Struggles: Some airlines struggle with profitability and debts.

Future of Indian Airlines: Who Will Dominate?

• IndiGo is expected to maintain its market leadership with aggressive expansion and competitive pricing.
• Air India, after its merger with Vistara, aims to strengthen its international footprint.
• Akasa Air is emerging as a strong competitor with a growing fleet and strategic investments.

Source: Business-Standard