India Becomes World’s Third-Largest Domestic Aviation Market

Tags: Reports

India has surpassed Brazil to become the world’s third-largest domestic aviation market, following the U.S. and China.

An Overview of the News

• This ranking is based on data compiled by the aviation analytics firm Official Airline Guide (OAG).

•  The growth has been driven by airlines like IndiGo and Air India expanding their fleets to meet the increasing number of air passengers.

• India’s domestic airline capacity doubled over the past decade, rising from 7.9 million seats in April 2014 to 15.5 million in April 2024.

• Comparison with Brazil and Indonesia: Brazil now ranks fourth with 9.7 million airline seats, followed by Indonesia at fifth with 9.2 million.

Growth Rates

• Highest Growth Rate: India posted the highest annual average capacity growth rate among the top five countries at 6.9%, followed by China at 6.3% and the US at 2.4%.

Airline Dominance

• IndiGo and Air India: These two airlines, which have more than 1,000 planes on order, dominate the market, accounting for 9 out of 10 domestic seats.

Low-Cost Carriers (LCCs)

• According to OAG, India has experienced the most significant shift towards low-cost carriers (LCCs) among the top five countries.

• As of April 2024, low-cost carriers (LCCs) represented 78.4% of India's domestic capacity. This was followed by Indonesia at 68.4%, Brazil at 62.4%, the US at 36.7%, and China at 13.2%.