Full-service carriers expanded capacity at a significantly faster pace than low-cost airlines in June 2026, helping increase their share in the company’s aviation market as operational challenges and geopolitical disruptions weighed on the budget airline segment.
The share of mainline carriers in India’s airline capacity rose to 31% in June 2026 from 28% a year earlier, while the low-cost carrier (LCC) segment’s share declined to 69% from 72%, according to data from aviation analytics firm OAG.
Mainline or full service carriers increased scheduled seat capacity by 15.9% year-on-year to 7.6 million seats in June 2026 from 6.5 million seats a year earlier. In comparison, LCC capacity grew by just 1.2% to 17 million seats from 16.8 million seats during the same period.
Mainline airlines include traditional network carriers that offer multiple cabin classes, baggage allowance, loyalty programmes and extensive international connectivity through hub airports. These include airlines such as Air India, Emirates, Qatar Airways, Singapore Airlines and Lufthansa. The low-cost segment comprises carriers such as IndiGo, Air India Express, Akasa Air, flydubai and Air Arabia, which operate simplified business models focused on lower fares.
Structural Drag
The shift in favour of mainline airlines comes at a time when several low-cost carriers have been grappling with operational and market challenges. Industry observers point to disruptions arising from the Middle East crisis, which affected flight schedules and route economics on several international and domestic routes. Rising fuel costs, mounting losses, aircraft delivery delays and engine-related groundings have also constrained capacity growth among budget airlines.
By contrast, full-service network carriers have continued to expand aggressively, supported by fleet induction programmes, stronger premium travel demand and growing long-haul international traffic. International airlines serving India have also been adding capacity as outbound travel demand remains robust.
Wide-Body Dominance
The broader market data underscores this trend. International capacity grew 9.6% year-on-year to 7.9 million seats in June 2026 from 7.2 million seats a year earlier, significantly outpacing domestic capacity growth of 3.4%, which increased to 16.6 million seats from 16.1 million seats.
While low-cost carriers continue to dominate the country’s aviation market with more than two-thirds of total scheduled seats, the pace of growth has shifted decisively towards network airlines. Mainline carriers added more than 1.04 million seats year-on-year, compared with around 184,000 seats added by LCCs.
The trend highlights a gradual rebalancing within the country’s aviation sector. Although the market remains overwhelmingly low-cost in nature, full-service airlines are steadily strengthening their position by expanding international networks and premium offerings. The widening gap in capacity growth also reflects divergent strategies, with network carriers pursuing scale and connectivity while many budget airlines remain focused on managing fleet constraints and protecting profitability amid a challenging operating environment.