India Becomes Third-Largest Domestic Aviation Market

India became the world’s third-largest domestic aviation market in April 2024, with airline capacity of 15.6 million seats. The market moved ahead of Brazil and Indonesia and stood behind the United States and China in global domestic traffic.

Domestic Aviation Market

The domestic aviation market covers passenger air travel within the borders of a country. In this market, airline capacity is measured in seats available on scheduled flights during a given period. OAG is a global travel data and analytics company that tracks airline capacity and schedules.

India’s Position in Global Aviation

India ranked fifth in the overall global aviation market in 2024, which includes both domestic and international passenger traffic. In the domestic segment, India rose from fifth place a decade ago to third place in April 2024. The United States and China retained the first two positions in the domestic aviation market.

Capacity Growth and Airline Structure

India recorded an average annual capacity growth rate of 6.9% between 2014 and 2024 among the top five domestic aviation markets. Low-cost carriers accounted for 78.4% of India’s domestic airline capacity in April 2024, which was the highest LCC share among the top five markets. IndiGo increased its share of domestic capacity from 32% in 2014 to 62% in April 2024.

Important Facts for Exams

• India became the world’s third-largest domestic aviation market in April 2024.
• The domestic aviation market of the United States and China remained larger than India’s market in 2024.
• India’s domestic airline capacity reached 15.6 million seats in April 2024.
• Low-cost carriers held 78.4% of India’s domestic airline capacity in April 2024.

Airport Expansion and Market Outlook

The number of operational airports in India increased from 74 in 2014 to 164 in 2025, as stated in the Economic Survey 2025-26. The Indian aviation market is projected to grow from USD 16.24 billion in 2025 to USD 45.59 billion by 2034 at a CAGR of 11.72%.