India Becomes World’s 3rd Largest Domestic Airline Market: OAG Report

According to the Official Airline Guide (OAG) report, India has ascended to become the 3rd largest domestic airline market in the world. This milestone is marked by a significant increase in its domestic airline capacity, which surged from 7.9 million seats in April 2014 to 15.6 million seats in April 2024.

Key Highlights:

Global Rankings:

• Top Domestic Markets:
  • 1st: United States of America (USA) with 86.1 million seats
  • 2nd: China with 67.8 million seats
  • 3rd: India with 15.6 million seats
  • 4th: Brazil
  • 5th: Indonesia

Growth and Capacity:

• India’s Rapid Growth: India has demonstrated the fastest growth rate among the top five domestic markets worldwide. The country’s domestic airline capacity has been growing at an annual rate of 6.9%, the highest over a 10-year average.
• Low-Cost Carriers (LCCs): India leads in the proportion of low-cost carriers among the top five countries. As of April 2024, LCCs accounted for 78.4% of India’s domestic capacity.
• IndiGo’s Influence: IndiGo has been a significant driver of this growth, with its market share nearly doubling from 32% to 62% over the past decade.

Milestones and Achievements:

• Record Passenger Numbers: On November 19, 2023, Indian airlines carried almost 4.56 lakh domestic passengers, the highest since the COVID-19 pandemic, surpassing pre-COVID averages by 7.4%.
• Expansion of Airports: The number of operational airports in India increased from 74 in 2014 to 157 in 2024.

Conclusion:

India’s rise to the 3rd largest domestic airline market is a testament to its robust growth and strategic expansion in the aviation sector. The significant increase in domestic capacity, driven primarily by low-cost carriers like IndiGo, highlights the dynamic nature of India’s aviation market. The country’s continued investment in airport infrastructure and its ability to surpass pre-COVID passenger numbers underscore its resilience and potential for future growth. This achievement not only places India as a key player in the global aviation industry but also reflects its commitment to enhancing connectivity and accessibility across the nation.