IndiGo, SpiceJet market share decline in May; how aviation stocks are performing after traffic data

Aviation stocks like IndiGo operator InterGlobe Aviation and SpiceJet closed lower on Wednesday, July 8, as both the airlines witnessed a dip in their market share for the month of May. A broad-based sell-off in the market weighed on these stocks, tracking the rise in crude oil prices.

According to DGCA data, IndiGo's market share in May slipped to 64.9%, whereas SpiceJet saw its market share shrink to 2.5% during the month.

On the flip side, Air India Group's market share climbed to 25.6% while Akasa Air's market share remained unchanged at 5.8%.

Indian airlines carried 1.53 crore domestic passengers in May, over 11% higher than 1.38 crore people flown in April, according to official data. Compared to May 2025, the domestic air traffic jumped 9.49%.

“Passengers carried by domestic airlines during January-May 2026 were 729.40 lakh as against 715.70 lakh during the corresponding period of the previous year, thereby registering an annual growth of 1.91% and monthly growth of 9.49%," DGCA said in its report for May.

In terms of On Time Performance (OTP) at the 10 major airports in May, IndiGo topped the list at 82.8%, followed by Akasa Air and Air India Group at 78.3% and 74.5%, respectively. Alliance Air's OTP stood at 70.5% while that of SpiceJet was 26.5%.

The overall cancellation rate of scheduled domestic airlines stood at 0.55% in May.

The Directorate General of Civil Aviation (DGCA) report showed that in May, 63,723 passengers were affected by flight cancellations, and airlines shelled out ₹70.32 lakh towards compensation and facilities.

Flight delays impacted more than 1.77 lakh passengers, and airlines spent a little over ₹4.24 crore towards facilitation.

As many as 900 passengers were denied during the month, and carriers shelled out ₹98.60 lakh towards compensation and facilities, according to the report.

Crude oil price impact

Shares of IndiGo and SpiceJet also slipped following a surge in crude oil prices in the global market to nearly $79 per barrel (bbl) during the trading session on Wednesday.

Global benchmark Brent crude oil prices surged over 6% to an intraday high of $78.83 per bbl on Wednesday’s market, compared to $74.16 per bbl at the previous commodity market close, according to Investing.com data.

Latest reports suggest that along with the retaliatory attacks on Iran, the United States has also re-imposed sanctions on Iranian oil exports as both nations now test the fragility of the interim peace agreement and the existing ceasefire MoU.

Here’s how the stocks are faring

Opening at ₹5,266.50 apiece, shares of IndiGo declined 6% to an intraday low of ₹5,094 apiece on Wednesday. At close, the stock settled at ₹5,124 per share on the National Stock Exchange, falling 5.02%. It was the biggest laggard on the NIFTY50 index.

SpiceJet shares, after opening at ₹11.49 apiece on BSE, have lost 5% to today's low of ₹10.95. However, at the end of the session, the scrip closed 3.04% lower at ₹11.18 per share.

Since the beginning of the year, IndiGo's shares have climbed over 3.4%, and its market capitalisation stands at ₹1.98 lakh crore.

Meanwhile, SpiceJet, with a market capitalisation of ₹1,706.18 crore, has tanked 61% so far since the beginning of 2026.