Air India, the country’s second-largest airline, has 3.3 million seats in October 2026, a capacity contraction of 12.6% (478,000 fewer seats) compared with last year. The airline, which is restructuring its operations amid heavy financial losses, kept capacity at the same level as in August 2026, typically a lean travel period. Capacity was even lower in September 2026, at 3.2 million seats.
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The capacity contraction is adding further pressure on airfares. SpiceJet reduced capacity at the fastest rate—38.8%, or 241,000 fewer seats. Akasa Air was the only airline to increase capacity, by 35.6%.
Airlines have been rationalising capacity amid high jet fuel prices, geopolitical challenges and the rupee’s depreciation against the dollar. Earlier this month, IndiGo revised its fuel surcharge on domestic and international routes because of high jet fuel prices.
High-demand routes
Mumbai–Delhi remains India’s busiest domestic route, with 681,800 seats, up 7% from last year. Bengaluru (BLR)–Delhi (DEL) is again the second-busiest domestic route, with 475,100 seats, a 1% contraction in capacity compared with October 2025.
Capacity on the Kolkata–Delhi (CCU–DEL) route increased at the fastest rate, rising 13% to 325,000 seats. Reports indicate that fares on certain domestic routes have risen by as much as 70% because of festive travel demand.
Amid rising fares, the Centre informed the Supreme Court that rules under the Bharatiya Vayuyan Adhiniyam, 2024, had been finalised and would be published within two weeks. The court directed the Centre to place the published rules before it at the next hearing, scheduled for November 16.
In July this year, the court had directed the Centre to submit the proposed rules in a sealed cover and called for the rationalisation of airfares.