New Delhi: Indian airlines are increasing their premium seating capacity despite broader capacity reductions across parts of the aviation industry, with IndiGo recording the biggest expansion in the Winter Schedule 2026. The shift highlights how carriers are placing greater emphasis on attracting passengers willing to pay more for comfort and additional services.
According to data shared exclusively by aviation analytics firm OAG, Indian airlines increased their combined premium seat capacity by 3.1% year on year in the Winter Schedule 2026. The total rose to approximately 16.5 lakh seats, compared with 15.86 lakh in the previous winter schedule.
The expansion comes as airlines look to improve revenue from each flight rather than relying exclusively on increasing the number of seats available. Corporate travellers, small and medium enterprises, professionals and leisure passengers seeking a more comfortable travel experience are among the customer groups driving demand for premium products.
The trend is particularly visible at IndiGo, which recorded the largest increase in premium capacity. Air India, despite remaining the country’s biggest premium seat operator, reported a decline, while Air India Express also reduced its overall premium seating.
IndiGo records the largest increase
IndiGo’s premium seat capacity increased by 32.4% year on year to 5.63 lakh seats in the Winter Schedule 2026, compared with 4.25 lakh in the corresponding previous period. This represents an addition of approximately 1.38 lakh seats.
The increase was primarily driven by domestic operations. The airline added around 1.35 lakh domestic premium seats, taking its capacity in this segment to 4.97 lakh from 3.62 lakh. This represented a year-on-year increase of 37.3%.
International premium capacity also grew, although at a more moderate pace. It increased by 4.5%, or 2,803 seats, to 65,712 from 62,909 in the previous winter schedule.
The expansion reflects IndiGo’s efforts to develop its premium offering while retaining its established position in the economy travel segment. Industry sources told that the airline’s core business would continue to depend on its narrow-body, all-economy model, even as it expands premium options.
The airline is expected to adopt a targeted approach to deploying premium seats on domestic and short-haul international routes. Markets with a stronger base of corporate and premium travellers are likely to receive greater attention.
For medium- and long-haul international services, IndiGo intends to extend its premium offering more widely across its routes, according to the sources cited in the report.
Air India remains the largest premium seat operator
Air India continued to hold the largest share of premium seating capacity among Indian airlines in the Winter Schedule 2026. However, its total premium capacity declined by 2.6% year on year.
The airline offered approximately 8.46 lakh premium seats during the period, compared with 8.69 lakh in the previous winter schedule.
The reduction was visible in both domestic and international operations. Domestic premium capacity declined by 3.1%, with the airline offering 6.39 lakh seats against 6.59 lakh a year earlier. This represented a reduction of 20,677 seats.
International premium capacity fell by 0.8%, or 1,661 seats, to 2.07 lakh from 2.09 lakh.
Despite the decline, Air India’s premium seating capacity remained substantially higher than that of IndiGo. The figures underline the different positions of the two airlines in the premium travel market: Air India retained the largest overall capacity, while IndiGo registered the fastest expansion among the carriers covered in the report.
The increase at IndiGo also indicates that premiumisation is not limited to airlines traditionally associated with full-service travel. Carriers with a strong economy-class business are also exploring ways to attract passengers looking for upgraded services.
Air India Express reduces domestic premium capacity
Air India Express recorded a sharper reduction in premium seating during the Winter Schedule 2026.
Its overall premium seat capacity declined by 18.3% year on year to 1.99 lakh from 2.43 lakh in the previous winter schedule.
The reduction was concentrated in domestic operations. Domestic premium capacity fell by 22%, representing a decrease of 50,940 seats. The airline offered 1.80 lakh domestic premium seats, compared with 2.31 lakh a year earlier.
International operations showed a contrasting trend. Premium capacity on international routes increased by 51.7%, adding 6,348 seats to reach 18,616 from 12,268 in the previous winter schedule.
The contrasting domestic and international figures suggest that the airline’s premium capacity adjustments were not uniform across its network. While domestic premium seating was reduced, international premium capacity expanded from a smaller base.
Why airlines are focusing on premium passengers
The expansion of premium seating reflects a broader effort by airlines to improve revenue and route profitability. According to Ashish Chhawchharia, Partner and Aviation Industry Leader at GT Bharat, rising disposable incomes, affluent leisure travellers and expanding corporate travel are contributing to the trend.
He also pointed to passengers’ growing willingness to pay for comfort and a differentiated flying experience.
Premium seats can generate higher revenue per passenger than economy seats. Chhawchharia noted that they can deliver materially higher yields while requiring only limited additional costs, potentially improving the profitability of individual routes.
The shift is also taking place against a backdrop of modest overall growth in domestic airline operations. GT Bharat estimated that domestic operations were set to grow by around 3.4%, while airlines were directing a larger share of expansion towards premium products.
This suggests that premium capacity could grow faster than overall capacity as carriers seek to improve yields and strengthen their financial performance amid competition.
A changing strategy in Indian aviation
The latest OAG figures point to a change in how Indian airlines are approaching growth. Instead of measuring expansion only through the total number of seats or flights, carriers are increasingly considering the mix of passengers they can attract and the revenue different seating categories can generate.
IndiGo’s expansion is the most prominent example of this approach in the Winter Schedule 2026. Air India’s position as the largest premium operator remains intact despite a reduction in capacity, while Air India Express has made a different set of adjustments across domestic and international routes.
The figures do not indicate that economy travel is losing its importance. Rather, they show airlines seeking to add premium options alongside their existing business models.
As demand from corporate travellers, professionals and higher-spending leisure passengers develops, premium seating is likely to remain an important part of airline revenue strategies. The latest winter schedule data provides a snapshot of how India’s major carriers are positioning themselves in this evolving market.