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* Domestic air passenger (PAX) traffic declined 6% YoY and increased 1% MoM to 12m in Aug’26. PAX growth stood at -5%/-2% for IndiGo, -5%/0% for Akasa, -9%/+12% for Air India, and -46%/-25% for SpiceJet on a YoY/MoM basis.

* Adjusted average domestic load factor (PLF; average of AI and Akasa) declined ~520bp YoY to 80.9% in Aug’26. PLF declined MoM for the AI/Akasa/SpiceJet/Indigo Group by 620bp/430bp/420bp/320bp. Domestic airline on-time performance (OTP) stood at 71.1%, with IndiGo leading at 91.5%.

* IndiGo gained ~80bp market share YoY (declined ~230bp MoM) to 65% in Aug’26. In contrast, market share for the AI Group/SpiceJet declined ~70bp/90bp, while for Akasa, it remained flat on a YoY basis. On an MoM basis, AI witnessed ~270bp increase, while SpiceJet witnessed ~40bp decline, and Akasa remained flat. Market share for AI/SpiceJet/Akasa stood at 26.7%/1.2%/5.5%.

India's domestic air PAX and market share

* India's domestic air PAX declined 6% YoY and increased 1% MoM to 12m in Aug’26. Domestic PAX stood at 7.9m for IndiGo (down 5% YoY/2% MoM), 3.3m for the AI Group (down 9% YoY/Up 12% MoM), 0.7m for Akasa (down 5% YoY/flat MoM), and 0.1m for SpiceJet (down 46% YoY/25% MoM).

* IndiGo’s domestic market share expanded ~80bp YoY/declined 230bp MoM to 65%. Domestic market share for: i) AI Group – 26.7% (down 70bp YoY/up 270bp MoM), ii) Akasa – 5.5% (flat YoY/flat MoM), and iii) SpiceJet – 1.2% (down 90bp YoY/40bp MoM).

Domestic industry’s PLF and OTP

* Adj. domestic PLF stood at 80.9% in Aug'26 (85.4% in Jul’26 and 86.1% in Aug’25). PLF was 79.2% for IndiGo (down 320bp MoM), 77% for the AI Group (down 620bp MoM), 87.6% for Akasa (down 430bp MoM), and 79.9% for SpiceJet (down 420bp MoM).

* The average OTP for domestic airlines across the top 10 airports stood at 71.1%. OTP stood at 91.5% for IndiGo, 83.9% for the AI Group, 90.5% for Akasa, and 17.9% for SpiceJet. According to the DGCA report, 65% of the delays were termed as ‘reactionary’, i.e. a delay caused by the late arrival of aircraft or crew.

Other highlights

* Brent crude oil prices averaged USD88/bbl in Aug’26 vs. USD84.1/bbl in Jul’26. West Asia crises, particularly concerns over disruptions to oil supplies and shipping routes, led to an increase in prices.

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