As July 2025 commences, India's aviation sector is experiencing a noticeable contraction in flight operations. Domestic flights have dipped below 3,000 daily, with passenger numbers falling under 4 lakh. This decline arrives on the heels of Delhi Airport initiating runway work on 10/28, which had already caused a reduction in flight operations.
Several factors contribute to this drop. Seasonality plays a significant role, as the July-August-September quarter is traditionally a weaker period for Indian aviation. Airlines typically adjust their capacity during this time to align with the reduced demand. This lull also allows airlines to send aircraft for scheduled maintenance checks, ensuring they are in optimal condition for the peak season spanning October to December.
Data from aviation analytics firm Cirium indicates a substantial reduction of 1,159 flights per week in July compared to June. The Ministry of Civil Aviation has also reported fewer than 3,000 flights per day during the first three days of July. While Air India planned a 5% reduction in its schedule, other airlines, including IndiGo, have implemented even more significant cuts in their domestic schedules.
Despite the domestic market contraction, India's international aviation market has experienced growth. In July 2025, domestic capacity accounts for 68% of the total, while international capacity makes up 32%. Over the past year, the international market has grown by 8.1%, even as the domestic market has slightly contracted by 0.3%.
IndiGo maintains its position as the largest airline in India, holding 48% of the market share with 11.7 million seats in July 2025, a 3% increase compared to the previous year. Air India follows with a 16% market share and 3.9 million seats, showcasing substantial growth of 39% compared to last year. Air India Express has demonstrated the most significant year-on-year growth, increasing its capacity by 132% to 2.8 million seats, making it the third-largest airline in India.
Delhi (DEL) remains the busiest airport for domestic flights, with 2.6 million seats in July 2025, despite an 8% decrease compared to July 2024. Mumbai (BOM) and Bengaluru (BLR) rank as the second and third busiest airports, with 1.9 million and 1.7 million seats, respectively, maintaining similar capacity levels as the previous year. Guwahati (GAU) has seen the largest percentage increase in domestic capacity, followed by Hyderabad (HYD), with 9% and 8% more seats, respectively. Kolkata, the fifth busiest airport in India, has experienced a 4% decrease in capacity.
Low-cost carriers (LCCs) dominate the Indian market, holding 65% of the capacity. In July 2025, LCCs offered 16.6 million seats, reflecting a 7% growth compared to July 2024. Full-service airlines account for 32% of the market, with 7.7 million seats, but have experienced a 7% year-on-year reduction in capacity.
Internationally, the United Arab Emirates is the busiest country market from India, with 1.2 million seats and a 29% market share, representing an 8% increase in capacity compared to last year. Thailand has also seen significant capacity growth, adding 28% more seats, although its overall market share is smaller at 8% with 318,000 seats. Saudi Arabia has moved into third place with 299,000 seats, holding a 7% market share and demonstrating an 18% increase compared to the previous year.
