SpiceJet’s market share drops to 0.6%, falls below Star Air for the first time

Market share and traffic collapse

SpiceJet’s domestic passenger market share fell to 0.6% in September, its lowest level in 2026, according to data from the Directorate General of Civil Aviation (DGCA). The airline, once a major player in India’s aviation sector, carried only 730,000 passengers in September, a sharp decline from 5.92 million in January.

Regional carrier Star Air overtook SpiceJet for the first time, securing a 0.7% market share in September. Star Air’s share had recovered from 0.5% earlier in the year to 0.6% in April and May, before rising to 0.7% in June and maintaining that level through September.

Overall domestic air traffic declined by 6.5% year-on-year in September, totaling 11.8 million passengers. Compared to August, traffic dropped by around 2.5%.

Competitors consolidate dominance

IndiGo led the market with a 65.4% share in September, up from 65% in August. Akasa Air followed with 5.6%, a slight increase from 5.5% the previous month. Alliance Air’s share slipped to 0.4% from 0.5% in August, while the Air India Group maintained its position.

The decline in SpiceJet’s market share reflects broader struggles, including operational challenges. The airline’s On Time Performance (OTP) was the lowest among major carriers at 16.6% in September, according to DGCA data. IndiGo and Akasa Air led OTP rankings with 91.1% and 90.8%, respectively, while Air India Group recorded 81.7% and Alliance Air 75%.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

SpiceJet’s collapse in market share and passenger numbers signals a critical phase for the airline, which has faced financial and operational challenges for years. For competitors like IndiGo and Akasa Air, this shift presents an opportunity to capture distressed market share, particularly in routes where SpiceJet was once a dominant player.

The broader 6.5% decline in domestic air traffic also raises questions about demand trends in India’s aviation sector. If this decline persists, airlines may need to reconsider capacity expansion plans or pricing strategies to sustain profitability. For founders and operators in adjacent sectors—such as travel tech, aircraft leasing, or airport services—SpiceJet’s struggles are a reminder of the fragility of even established players in high-fixed-cost industries.

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