Indian Aviation Market Surges in January 2025: Domestic Traffic and ATF Consumption Hit New Highs

The Indian aviation industry has witnessed a strong start in 2025, with the domestic air traffic soaring to 146.11 lakh passengers in January. This marks an impressive 11.2% growth compared to January 2024, showcasing the sector’s robust recovery and expanding demand. However, this figure is slightly lower than December 2024, which had set a high benchmark.

Aviation Turbine Fuel (ATF) Consumption Hits Record Levels

In tandem with the rise in domestic passenger traffic, the consumption of Aviation Turbine Fuel (ATF) peaked at 784,000 metric tonnes in January 2025. This surge indicates a significant increase in flight operations and airline capacities, further affirming the aviation sector’s accelerating momentum.

IndiGo Strengthens Market Dominance

IndiGo, India’s leading airline, continues to tighten its grip on the domestic aviation market. While the airline has been making headlines for the damp-leasing of Boeing 787-9 Dreamliners, it remains unwavering in its focus on domestic operations.

In January 2025, IndiGo recorded a historic market share of 65.2%, the highest ever for the airline. This follows an already strong performance in December 2024, where it held 64.4% of the market share. The airline closed the year with a 61.9% market share, demonstrating consistent growth and dominance in the sector.

What’s Driving the Growth in Indian Aviation?

Several factors contribute to this positive trajectory in India’s aviation sector:

1. Increased Travel Demand – The post-pandemic recovery, economic growth, and a surge in business and leisure travel continue to drive passenger numbers upward.
2. Competitive Airfares & New Routes – Airlines are introducing new domestic routes, competitive pricing, and enhanced services, making air travel more accessible.
3. Induction of New Aircraft – IndiGo’s expansion strategy, including the acquisition of damp-leased Boeing 787-9 Dreamliners, enhances its fleet capacity and efficiency.
4. Government Initiatives – The UDAN (Ude Desh Ka Aam Nagrik) scheme and airport infrastructure development are facilitating smoother operations and connectivity.

Looking Ahead: What’s Next for Indian Aviation?

With strong domestic travel demand and strategic expansions by key airlines, the Indian aviation sector is poised for further growth in 2025. Industry experts anticipate continued passenger growth, increased fuel consumption, and enhanced airline operations.

As IndiGo and other airlines compete to expand their market share, travelers can expect better connectivity, more flight options, and an overall improved air travel experience in the coming months.