A significant shift is underway in the international market share among India's major airlines, with IndiGo experiencing a decline while the Air India Group makes notable gains, according to recent brokerage reports.
Data for H1FY27 from Equirus Securities indicates that the Air India Group's international passenger share among Indian carriers recovered to 46.8% in September, marking a substantial increase. Concurrently, IndiGo, India’s largest airline by overall market share, saw its international share fall to 47.4% last month. This narrows the gap considerably between the two aviation giants.
IndiGo's Retreat from Wide-Body Operations
IndiGo's declining international presence can be primarily attributed to its decision to halt wide-body aircraft operations as of October 25. The airline returned six Boeing 787-9 aircraft, which were damp-leased from Norwegian carrier Norse Atlantic, back to their owner. These aircraft had been deployed on key routes to London and other European destinations.
The airline cited a confluence of operational and economic challenges for this strategic move. These include ongoing geopolitical tensions, persistently high jet fuel prices, and the appreciation of the US dollar. IndiGo had previously announced in July that "Airspace constraints, elevated fuel costs and currency pressures have impacted route efficiency, schedule integrity, connectivity and overall competitiveness."
Future International Ambitions and Domestic Dominance
Despite ceasing its current wide-body services, IndiGo has reiterated its commitment to long-term international expansion. The airline has placed a substantial order for 60 Airbus A350-900 wide-body aircraft, with the first deliveries anticipated by early 2028. Routes like Mumbai-Manchester will now be operated by Airbus A321XLR aircraft, while services to London Heathrow are temporarily suspended until the new A350s arrive.
Domestically, IndiGo continues to strengthen its market leadership. Its domestic passenger share climbed to 65.2% in September 2026, solidifying its dominant position within India's aviation sector, even amidst a sequential decline in overall traffic.
Air India's Resurgence
The Air India Group has capitalized on these market dynamics, steadily increasing its international passenger share from 40.8% in June to 46.8% in September. This resurgence positions Air India to reclaim a more prominent role in the competitive international aviation landscape.