India's domestic air traffic growth hits 3-year-low this May
30 Jun 2025
India's domestic air traffic witnessed a meager month-on-month growth of 1.89% in May 2025, the slowest in over three years.
The last time such sluggish growth was seen was back in February 2022 when the traffic had shrunk by 1.68%.
The sharp decline comes after months of robust performance with consistent growth rates above 8% since October last year.
Impact of India-Pakistan conflict on airlines
Operational disruptions
The recent military conflict between India and Pakistan has severely impacted operations at 32 airports in border areas.
This led to a number of flight cancellations and diversions, directly affecting both growth and passenger load factors across airlines.
IndiGo's load factor fell to 85.1% from April's 86.9%, while Air India's dropped to 80.2% and Akasa's eased to 91.4%.
SpiceJet's market share declines further
Airline performance
Despite the operational disruptions, IndiGo managed to maintain its market share at roughly 64.6%, a slight increase from April. However, Air India's share fell to 26.5%.
Akasa continued its upward trend, reaching a market share of 5.3%.
On the other hand, SpiceJet's market share further declined to 2.4%, continuing its downward trajectory in the industry.
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