December Rush: Why IndiGo’s cancellations are a disaster for India’s aviation sector

IndiGo’s mass cancellations could not have come at a worse time for India’s aviation sector, disrupting travel during the busiest month of the year.

Passenger traffic in December 2024 hit a fresh seasonal peak of 1.49 crore, up 8.2 percent from 1.38 crore a year earlier. Aircraft departures increased at the same rate, reflecting the higher holiday-season deployment.

This December surge is a long-standing pattern. Even before the pandemic, the month consistently delivered the highest domestic traffic, driven by school vacations, leisure travel and the return of migrant workers. The trend resumed post-COVID, with December 2021, 2022, 2023 and 2024 each emerging as the busiest month of their respective years.

IndiGo’s grounding has hit an industry already struggling to stay aloft. Air travel has been muted relative to last year: average passenger growth until October was 4.1 percent, down from 5.3 percent a year earlier. Since July, air traffic has been in continuous decline, with October the only exception—a modest 2.1 percent rise due to festival travel.

Both departures and passengers carried have contracted since July, slipping 2 percent year-on-year—the first such decline since the pandemic. Within this fragile environment, IndiGo’s disruptions have delivered an outsized shock.