Air India Group June local passenger market share at 27.1%

Air India Group June local passenger market share at 27.1%

Air India's market share in local passenger traffic reached 27.1% in June 2025, marking a significant increase from its previous market share. This growth can be attributed to the airline's aggressive revival plan, which includes major aircraft orders and market share expansion. However, the airline continues to face challenges, including recent incidents and industry risks.

In FY25, Air India's revenue soared by 15%, reaching ₹78,636 crore from ₹66,556.21 crore in FY24 [1]. Despite this revenue growth, Air India's loss widened to ₹10,859 crore, making it the largest lossmaker for the Tata Group in the same period. This financial year, Air India's loss was ₹10,859 crore, up from ₹7,356.3 crore in FY24 [1].

The airline's market share increase is part of its 5-year revival strategy, which includes refitting old planes, buying new planes, and expanding its domestic and international routes. However, the recent crash of Air India's AI-171 Boeing flight, which killed all but one of the 242 people on board and 19 others, may have pushed back the airline's revival plans [1].

The crash also led to a minor increase in pilots reporting sick, with 112 pilots, including 51 commanders, calling in sick on June 16 [2]. The Ministry of Civil Aviation acknowledged this increase and highlighted existing DGCA guidelines for mental health support for flight crew and air traffic controllers.

Air India's market share growth and financial performance in FY25 are notable, but the airline continues to face significant challenges. The industry as a whole is expected to post a net loss of ₹2,000-3,000 crore in FY26, according to rating agency ICRA [1]. Domestic air passenger traffic is projected to grow by 7-10% to 175-181 million this financial year, after growing at 7.6% to 165.4 million in FY25 [1].

References:
[1] https://www.livemint.com/companies/company-results/air-india-fy25-revenue-indigo-11753343426164.html
[2] https://m.economictimes.com/industry/transportation/airlines-/-aviation/air-india-saw-minor-increase-in-pilots-reporting-sick-after-ahmedabad-plane-crash-govt/articleshow/122880288.cms