Archive · 23 Sep 2026
Air India Regains Domestic Market Share as Express Expands
Air India gained some customers in India in August.
Its smaller airline, Air India Express, added many more flights.
Together, the two airlines carried more passengers than in July.
However, fewer people overall were flying in India.
This means Air India’s growth mostly came from adding seats rather than from stronger demand.
Air India is focusing more on international and major-city flights.
Air India Express is taking over more smaller-city and regional routes.
The group’s planes were not filled as much as before.
New chief executive Tewolde Gebremariam is expected to work on improving punctuality and the company’s financial performance.
Air India’s domestic market share rose 2.7 percentage points to 26.7% in August, while IndiGo’s fell to 65%.
The Tata group’s two airlines carried 3.23 million domestic passengers, up from 2.9 million in July.
Air India Express increased domestic flights by 13%, while Air India’s own flight schedule was largely unchanged.
India’s domestic passenger traffic fell 6.34% month-on-month in August, indicating that capacity grew faster than demand.
Air India’s on-time performance was 83.9%, below IndiGo’s 91.5%, as incoming chief executive Tewolde Gebremariam prioritizes operational improvements.
- Who
- Air India, Air India Express, IndiGo, the Tata group, and incoming Air India chief executive Tewolde Gebremariam.
- What
- Air India’s domestic market share increased as Air India Express expanded its flying, despite weakening overall demand.
- When
- In August; Gebremariam is scheduled to take charge later this month.
- Where
- India’s domestic aviation market.
- Why
- Air India Express added capacity, refurbished aircraft returned to service, and the two airlines expanded their coordinated offerings while domestic demand slowed.
Capacity-driven recovery
Demand-led caution
Reason for market-share gain
Capacity-driven recovery
Air India’s share improved because refurbished aircraft returned to service, Air India Express increased flights, and its bookings became available through Air India’s website and app.
Demand-led caution
The increase may not represent a lasting competitive shift because passenger demand weakened and seat utilization declined.
Future growth
Capacity-driven recovery
Air India could continue gaining share as more aircraft return to service and the group’s two-airline strategy expands its reach.
Demand-led caution
Sustaining the gains depends on demand recovering; capacity increased faster than demand in August.
Airline strategy
Capacity-driven recovery
Separating roles could make Air India a full-service carrier for international, long-haul, and major-city routes while Air India Express serves regional markets.
Demand-led caution
The transition includes Air India exiting six smaller-city routes in August, raising questions about how the group’s network is being reshaped.
- Air India market share
- 26.7% in August, up 2.7 percentage points.
- IndiGo market share
- 65% in August, down from 67.4% in July.
- Tata airlines passengers
- 3.23 million in August, compared with 2.9 million in July.
- Air India Express flights
- 9,460 domestic flights in August, up from 8,366 in July.
- Domestic traffic
- 12.13 million passengers in August, down 6.34% month-on-month.
- Load factor
- The Air India group’s load factor fell to 77% from 83.2% in July.
- On-time performance
- Air India recorded 83.9% at 10 major airports, versus IndiGo’s 91.5%.