# SpiceJet Market Share Plummets to 0.6% Below Star Air Cash-strapped airline records historic low market share amid severe operational performance challenges. - **Source:** [mint - companies](https://www.livemint.com/rss/companies) - **Published:** 2026-10-29 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/9104ee27-3301-451e-bc96-bc0b2fa0ac1e ## Historic Market Share Decline SpiceJet’s domestic passenger market share dropped to 0.6% in September 2026, marking a historic low. This figure places the airline behind regional carrier Star Air, which captured 0.7% of the market. This shift represents the first time SpiceJet has fallen below Star Air in the competitive Indian domestic aviation sector rankings. ## Consistent Monthly Passenger Erosion The airline’s decline has been steady throughout the year, starting from 3.9% in January. Passenger numbers plummeted from 5.92 million in January to just 730,000 by September. This consistent downward trajectory reflects deep-seated financial instability, as the carrier struggled to maintain its operational footprint against broader industry trends and increased competition. ## Operational Performance Crisis SpiceJet recorded an on-time performance of only 16.6% in September, significantly trailing industry leaders. In contrast, IndiGo achieved 91.1% and Akasa Air reached 90.8% at major airports. The DGCA calculates these metrics across ten key hubs, including Delhi, Mumbai, and Bangalore, highlighting the severe operational gap between SpiceJet and its peers. ## Star Air’s Strategic Ascent While SpiceJet faltered, Star Air demonstrated resilience by recovering its market share from 0.5% in early 2026 to 0.7% by June. The regional carrier maintained this 0.7% level through September, effectively overtaking the cash-strapped major airline. This performance underscores the shifting dynamics within the regional and domestic aviation landscape in India. ## Broader Domestic Traffic Contraction Overall domestic air traffic in India dropped by 6.5% in September compared to the same period last year. Total passenger volume reached just over 1.18 crore for the month. This sector-wide decline of 2.5% compared to August suggests a challenging macroeconomic environment affecting all carriers, though SpiceJet suffered disproportionately more. ## Competitive Landscape Shifts IndiGo continues to dominate the market, increasing its share to 65.4% in September from 65% in August. Akasa Air also saw a marginal gain, rising to 5.6% from 5.5%. Conversely, Alliance Air experienced a slight decline to 0.4%, illustrating the varied performance levels among different players in the current aviation market. ## Annual Industry Growth Trends Data from the DGCA indicates that total passengers carried between January and September 2026 reached 1,223.53 lakhs. This reflects an annual growth rate of -0.82% compared to the previous year. The monthly growth rate for September was recorded at -6.49%, signaling a cooling period for the domestic aviation industry as a whole. ## Implications of Financial Distress SpiceJet’s current trajectory highlights the critical impact of cash-strapped operations on market viability. With on-time performance at 16.6% and a shrinking passenger base, the airline faces significant hurdles to regain lost ground. The shift below Star Air serves as a stark indicator of the airline's diminishing influence in the domestic market. ## Sources covering this story - https://www.livemint.com/companies/news/spicejets-market-share-falls-to-0-6-slips-below-star-air-for-first-time-what-went-wrong-11793257532905.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._