India’s aviation industry is preparing for another phase of expansion, but rising operational costs and infrastructure challenges are creating hurdles for airlines.
According to a new report by CAPA – Centre for Aviation, Indian airlines had 1,790 aircraft on order as of October 12, 2026, highlighting the industry's ambitious expansion plans.
Despite these orders, India's total airline seat capacity is projected to decline by 1.3% in 2026, with international capacity expected to face a sharper reduction.
Aircraft delivery delays, engine-related issues, maintenance requirements and increasing operating costs are among the major factors affecting airline capacity.
The report highlights the importance of strengthening airport infrastructure, improving operational efficiency and ensuring sustainable airline growth to meet India's rising travel demand.
