IndiGo, India's largest airline, experienced a notable decline in its domestic market share in December 2025, according to data released by the Directorate General of Civil Aviation (DGCA). The airline's market share fell to 59.6% in December, a decrease of 4 percentage points from 63.6% in November. This slump came after a period of significant operational disruptions, including mass flight cancellations, primarily triggered by the introduction of new pilot rest rules and stricter night-time flying hour norms. The airline was forced to cut scheduled domestic departures by about 10%.
The disruptions suffered by InterGlobe Aviation-owned IndiGo in early December 2025 led to the cancellation of over 4,500 flights, leaving numerous passengers stranded at airports across the country. The overall cancellation of scheduled domestic airlines was 6.92% in December, and that of IndiGo was 9.65%. Consequently, IndiGo carried 85.23 lakh passengers in December, a 12% decrease from 96.93 lakh in November, and an 11% decrease year-on-year. December 2025 saw 4.1% less domestic flyers (across all airlines) at 1.43 crore, compared to 1.49 crore in same month previous year.
In contrast, Air India Group and Akasa Air capitalized on IndiGo's challenges, increasing their market shares to 29.6% and 5.2% respectively in December. SpiceJet also saw its market share rise to 4.3 per cent in December from 3.7 per cent in November 2025. The Tata-backed Air India Group gained over three percentage points during the month, emerging as the biggest beneficiary of IndiGo's operational disruption.
Despite the December decline, IndiGo still ended 2025 with a higher annual market share of 64%. The airline's domestic passenger carriage crossed the 10-crore mark for the first time last year at 10.7 crore, up from 9.99 crore in 2024. For the entire year 2025, domestic air traffic rose over 3 per cent to 16.69 crore.
IndiGo is now focusing on strengthening its operational resilience and internal systems to prevent future disruptions. This includes fleet expansion, with the deployment of Airbus A321XLR aircraft for longer routes, and an anticipated capacity increase of approximately 10% in the March quarter of 2026. The airline is fundamentally reorienting its strategic focus towards reinforcing its operational backbone. Chief Executive Pieter Elbers emphasized that building resilience in the system and making sure that the massive operations are further solidified is paramount for the airline in the coming year.
The Union Budget 2026-27 has been met with optimism by industry leaders, signaling support for infrastructure development and long-term capacity building. IndiGo, a dominant force with approximately 62% of the domestic market share as of FY24, faces competition from established players like Air India and emerging carriers such as Akasa Air. As of February 1, 2026, the company's market capitalization stood at approximately ₹1.81 lakh crore, with a Price-to-Earnings (P/E) ratio (TTM) around 56.44.