Indian Airlines Expand Premium Seats Despite Capacity Cuts, IndiGo Leads Push | Profit Exclusive

Indian carriers added 3.1% more premium seats in Winter Schedule 2026, with IndiGo accounting for the biggest expansion even as Air India and Air India Express cut capacity.

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Indian airlines are expanding their premium seating capacity despite industry-wide capacity cuts, with IndiGo accounting for the biggest increase in the Winter Schedule 2026. The industry added 3.1% more premium seats year on year, taking the total to about 16.5 lakh from 15.86 lakh in the previous winter schedule, according to data exclusively shared by OAG with NDTV Profit.

The expansion comes as airlines tap demand from corporate travellers, small and medium enterprises, professionals and leisure travellers willing to pay for premium services. Industry sources identified these customer segments as key drivers of the shift towards premium seating.

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IndiGo's Bet

IndiGo recorded the largest increase in premium capacity among Indian airlines. Its premium seat capacity rose 32.4% year on year to 5.63 lakh in Winter Schedule 2026 from 4.25 lakh a year earlier, an addition of 1.38 lakh seats, according to OAG data.

Domestic operations accounted for most of the increase. IndiGo added 1.35 lakh domestic premium seats, taking capacity up 37.3% to 4.97 lakh from 3.62 lakh.

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International premium capacity increased 4.5%, or 2,803 seats, to 65,712 from 62,909.

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Industry sources told NDTV Profit that premiumisation represents the next stage of IndiGo's growth, but the airline's core business will continue to rely on its narrow-body, all-economy model. The sources said the airline was seeing good traction for its domestic premium offering and on international routes.

IndiGo is expected to take a targeted approach to premium seat deployment on domestic and short-haul international routes, concentrating on markets with a strong corporate and premium customer base.

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For medium- and long-haul international services, the airline intends to extend its premium offering more widely across its routes, the sources said.

Air India's Lead

Air India remained the country's largest premium seat operator, although its capacity declined 2.6% year on year to 8.46 lakh in Winter Schedule 2026 from 8.69 lakh in the previous winter schedule.

Domestic premium capacity fell 3.1%, a reduction of 20,677 seats, to 6.39 lakh from 6.59 lakh. International capacity declined 0.8%, or 1,661 seats, to 2.07 lakh from 2.09 lakh.

Express Retreats

Air India Express reduced its overall premium seat capacity by 18.3% to 1.99 lakh in Winter Schedule 2026 from 2.43 lakh a year earlier, according to OAG data.

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The reduction was concentrated in domestic operations. Domestic premium capacity fell 22%, or 50,940 seats, to 1.80 lakh from 2.31 lakh.

International capacity, however, increased 51.7%, adding 6,348 seats to reach 18,616 from 12,268 in the previous winter schedule.

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