Indian aviation market shifts as Akasa Air expands during geopolitical disruption

Akasa Air emerged as the only major Indian carrier to significantly expand flight capacity in recent months, even as larger rivals including IndiGo and Air India reduced operations amid geopolitical disruption and rising fuel costs. The shift reflects changing dynamics in India’s aviation market as airlines grapple with operational challenges linked to tensions involving Iran and broader airspace restrictions across the region.

According to data from aviation analytics firm Cirium, reported by Bloomberg and Moneycontrol, the total number of flights operated by India’s four largest airline groups fell nearly 6% during March and April 2026 compared with the same period a year earlier.

In contrast, Akasa Air expanded flight capacity by 13.2% during the same period, strengthening its position in a market historically dominated by IndiGo and the Air India Group.

Larger airlines reduce operations amid pressure

India’s biggest airlines scaled back flights as operational costs climbed and route disruptions intensified.

Cirium data showed:

• IndiGo reduced flights by 4.5% year-on-year during March and April
• Air India’s full-service operations cut services by 7.5%
• Air India Express reduced flights by 17.1%
• SpiceJet increased flights by just 1% during the period

The operational pressure followed escalating tensions in the Middle East after the United States and Israel launched air strikes on Iran on 28 February, according to Bloomberg.

The geopolitical situation increased fuel costs and disrupted international flight operations for Indian carriers. Airlines were forced to reroute some services around Iranian airspace while continuing to deal with restrictions linked to the closure of Pakistani airspace for Indian operators.

These disruptions added flying time, increased fuel burn and complicated scheduling across international networks.

Akasa expands from smaller base

While Akasa’s overall scale remains far smaller than its larger competitors, the airline’s growth stood out in a slowing market.

The carrier operated 10,109 flights during March and April 2026, accounting for around 4.7% of all domestic and international flights operated by Indian airlines, according to Cirium data cited by Bloomberg.

The Mumbai-based airline began commercial operations in 2022 after being launched during the Covid-19 pandemic period.

Within the domestic market, government aviation data showed Akasa carried 5.4% of Indian passengers in March 2026.

By comparison:

• IndiGo held a 63.3% domestic passenger share
• The combined Air India Group accounted for 26.2%

India’s aviation sector has increasingly consolidated around IndiGo and Air India in recent years, with the two groups controlling nearly 90% of domestic capacity.

Fleet strategy supports rapid deployment

Industry observers have noted that Akasa’s smaller scale may have allowed the airline to react more quickly during operational disruption.

The airline currently operates 38 Boeing 737 MAX aircraft, compared with more than 420 aircraft at IndiGo and roughly 300 aircraft across the Air India Group.

Akasa said in March that it had placed a firm order for 226 additional aircraft, signalling aggressive long-term expansion ambitions.

Analysts cited by Bloomberg noted that larger airlines often operate tightly scheduled networks with limited flexibility to rapidly redeploy aircraft during periods of disruption, while smaller carriers may be able to adjust schedules more quickly.

Geopolitical risks reshape aviation economics

The developments highlight how geopolitical instability is increasingly influencing airline economics and network planning across Asia.

Higher aviation turbine fuel prices, longer flight paths and operational uncertainty have already weakened demand in some domestic markets as airlines passed increased costs to passengers through higher fares.

For Akasa Air, the current environment has created an opportunity to expand visibility in a market traditionally dominated by far larger carriers.

The airline’s long-term ability to sustain growth, however, will depend on fleet induction timelines, competitive pricing pressures and broader stability across regional aviation markets.