IndiGo’s Market Share Drops Sharply in December Amid Large‑Scale Cancellations

IndiGo experienced a significant setback in December 2025 as its domestic market share fell to 59.6% from 63.6% in November. The decline represented a steep 400‑basis‑point monthly drop, marking one of the sharpest reductions for the airline in recent years.

The fall occurred during a period of substantial operational disruption, including widespread cancellations triggered by scheduling and compliance challenges. The shift in market dynamics was further highlighted by gains recorded by competing carriers during the same month.

Major Scheduling Breakdown Leads to Widespread Disruptions

A severe scheduling crisis early in December played a key role in IndiGo’s market share decline. Thousands of flights were cancelled due to software‑related issues and difficulties in aligning operations with revised Flight Duty Time Limitations norms.

These cancellations occurred across multiple routes, affecting travel plans during one of the busiest periods of the year. The disruptions reduced service reliability and impacted the airline’s ability to maintain capacity across its network.

Competitors Gain Market Share as Travellers Shift Bookings

The Air India Group expanded its domestic market share to 29.6% in December, up from 26.7% in November. The increase reflected the group’s ability to absorb displaced passengers following IndiGo’s service disruptions.

Akasa Air also recorded a market share of 5.2%, while SpiceJet reached 4.3% during the month. These gains showed how capacity reallocation across the industry allowed competing airlines to strengthen their positioning during IndiGo’s operational difficulties.

Industry‑Wide Impact Visible During Peak Travel Period

The effects of the disruptions extended beyond individual airlines and were visible at the industry level. Despite December being a peak travel season, overall domestic passenger traffic declined 4.1% year‑on‑year.

The decrease illustrated the scale of cancellations and their effect on total market volumes. With large numbers of flights grounded, the reduction in available seats weighed on broader industry performance for the month.

Read More: IndiGo Launches ‘UpFront’ Premium Economy-Style Tier Amid Operational Strain.

Conclusion

IndiGo’s sharp market share decline in December underscored the operational pressures created by large‑scale cancellations. The disruption reshaped competitive dynamics, enabling the Air India Group, Akasa Air, and SpiceJet to capture additional market share.

The fall in overall domestic traffic further highlighted the effect of extensive schedule disruptions during a typically high‑demand period. The month closed with clear signs that operational reliability remained a central factor influencing airline performance and customer choices.

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