SpiceJet’s domestic market share fell to 1.6% in July, its lowest level in more than a decade, as the financially stressed airline continued to grapple with constrained capacity and a significantly reduced fleet. The carrier’s market share declined from 1.9% in June and 2.5% in May, according to data released by the Directorate General of Civil Aviation (DGCA).
The latest figure marks a dramatic erosion in SpiceJet’s position in India’s domestic aviation market. The airline’s market share peaked at 20.9% in July 2014, according to DGCA data, but has declined steadily over the past decade, falling below 10% in 2022 and to 5% or lower from late 2023. It touched 1.9% in September 2025 before briefly recovering to 4.3% in December following the induction of wet-leased aircraft.
The recovery, however, proved short-lived. SpiceJet’s market share fell from 4.3% in December to 3.9% in April 2026, 3.4% in May, 2.5% in June and 1.6% in July. The latest figure represents a decline of more than 92% from its July 2014 peak.
Capacity Constraints
The decline has been primarily driven by the airline’s inability to maintain capacity rather than a collapse in demand for air travel. Earlier this year, all 16 aircraft inducted under wet-lease arrangements had exited the fleet after SpiceJet chose not to extend the agreements amid weak seasonal demand, elevated aviation turbine fuel prices and rising operating costs.
At the same time, several of its aircraft were undergoing scheduled maintenance, including routine checks and C-checks, further reducing the number of aircraft available for commercial operations.
The airline is now operating around 20 aircraft, compared with a fleet of 58 aircraft in 2014 FY14 and 100 aircraft in 2019.
The airline had earlier said it expected capacity to gradually recover as aircraft returned from maintenance. It had planned to bring back three aircraft in July, followed by two in August and two each in September and October. SpiceJet had also planned to induct additional leased aircraft ahead of the festive travel season, with plans for 10 aircraft each in October and November.
The airline has since taken some steps to rebuild capacity. In July, SpiceJet inducted three Airbus A320 aircraft on damp lease from Cambodia-based Sky Angkor Airlines. The aircraft are expected to help the airline restore capacity and expand its network as demand typically strengthens during the festive and winter travel period.
Mounting Losses
However, the capacity rebuilding exercise comes against the backdrop of prolonged financial stress. SpiceJet reported a consolidated net loss of around ₹1,125 crore during the first three quarters of FY26, while its accumulated losses have crossed ₹8,600 crore.
The airline’s financial position has also affected its ability to secure aircraft on conventional long-term leases, increasing its dependence on wet- and damp-lease arrangements to maintain operations. The carrier has faced multiple disputes with aircraft and engine lessors over unpaid dues, with such disputes periodically resulting in aircraft being grounded.
Bankruptcy petitions filed against SpiceJet by aircraft lessors are set to be reheard after the airline reached a last-minute settlement with one of the lessors. The proceedings underline the continuing financial and operational challenges facing the carrier.
The latest DGCA numbers come as the Indian domestic aviation market continues to remain dominated by IndiGo and the Air India Group. With SpiceJet’s share now at 1.6%, the airline faces the twin challenge of restoring its fleet and rebuilding passenger capacity while addressing its financial obligations.