DGCA reported Indian domestic carriers transported 1.21 crore passengers in August 2026, marking a little over 1% rise from July’s 1.20 crore figure. However, traffic fell 6% year-on-year compared with August 2025. Industry experts linked the decline to capacity constraints, supply chain disruptions and engine groundings, while airlines managed fleets cautiously ahead of the festive travel season.

India’s Domestic Air Traffic Sees Sequential Tick In August But Lags 6% Behind Last Year’s Peak | AI

Mumbai: India’s domestic aviation sector experienced a modest month-on-month rebound in August, carried by routine end-of-summer travel demand, even as overall volumes remained constrained compared to the historic highs recorded during the same period last year.

Passenger traffic rises marginally from July

According to the latest monthly traffic report released by the Directorate General of Civil Aviation (DGCA), Indian domestic carriers transported 1.21 crore passengers in August. This represented a little over 1% sequential uptick over July’s figure of 1.20 crore passengers. However, on an annual basis, passenger traffic registered a 6% contraction compared to August 2025, when airlines carried 1.29 crore flyers.

According to industry experts, the year-on-year dip reflects a broader trend of calibrated capacity deployment by major carriers, coupled with supply chain disruptions and engine groundings that have clipped overall fleet availability across the sector. While the monsoon season traditionally marks a lean period for Indian air travel, the modest sequential growth from July indicates baseline resilience in demand, particularly across key metro-to-metro corridors.

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IndiGo and Air India Group maintain market dominance

According to the data from the previous months, low-cost carrier IndiGo and the consolidated Air India Group continue to command over 90% of the domestic market share combined, further consolidating their duopoly as smaller carriers battle fleet and operational headwinds. Airline passenger load factors across major carriers have been hovering at moderate levels, reflecting disciplined seat capacity management rather than aggressive fare discounting to artificially stimulate volume.

Aviation analysts note that while the August numbers show a year-on-year decline, the sequential improvement is an encouraging prelude to the upcoming festive season starting in late September. With Navratri, Dussehra and Diwali driving peak domestic travel, passenger volumes are expected to cross previous monthly benchmarks before the end of the year, provided fleet availability improves and jet fuel costs stabilise.

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