India’s Domestic Air Travel Jumps 15% in Feb – Here’s The Key Driver

India's domestic air travel saw a strong 15% year-on-year rise in February 2025, with passenger numbers reaching 14 million after adjusting for daily trends. The surge was largely driven by heightened travel demand during the Maha Kumbh festival, according to Emkay Research.

Market Dynamics and Airline Performances
Indigo, a key player in the Indian aviation sector, maintained its dominance despite a slight dip in market share to 63.7% in February. Meanwhile, the Air India group saw its market share expand by 160 basis points month-on-month, reaching 27.3%. SpiceJet and Akasa held steady with market shares of 3.2% and 4.7%, respectively. Together, Indigo and the Air India group controlled approximately 91% of the total domestic passenger traffic.

Improved Load Factors and Punctuality
Passenger load factors (PLFs) across major airlines saw significant improvements during the month. SpiceJet led with a notable increase of 410 basis points, achieving a PLF of 91.2% in February. Indigo and the Air India group also reported improvements, with PLFs of 91.7% and 87.2%, respectively. Akasa recorded a PLF of 95.1%, reflecting a month-on-month uptick of 140 basis points.

On-time performance (OTP) showed mixed results, with Indigo topping the charts at 80.2%, followed closely by Akasa at 78.6%. The Air India group improved its OTP to 73.4%, while SpiceJet reported the lowest OTP at 59.0%. Cancellations decreased significantly across airlines, with Indigo leading the reduction to just 0.31%.

Fuel Price Outlook and Economic Implications
The aviation sector could see relief in operating costs as lower Brent crude prices, currently around USD 70 per barrel, are expected to drive a 7% month-on-month reduction in Aviation Turbine Fuel (ATF) prices for April 2025. This projection considers a 5% decline in crude oil prices and a substantial drop in jet fuel spreads, as highlighted in a report by Emkay.

As India's domestic air travel continues to recover, airlines are navigating improved load factors and operational efficiencies amid evolving market dynamics and economic factors. The sector remains optimistic about sustained growth, albeit with ongoing challenges in punctuality and cost management.