Air India Ltd.’s local market share in June rose to its highest in three years, in a boost for the Tata Group-owned Indian carrier that’s combining with another airline to streamline operations and lure more fliers. 

The New Delhi-based airline carried 14.6% of all Indian passengers last month, up from 13.7% in May, according to data from India’s aviation regulator. This is the most since June 2021, when it flew 16.5% of all Indian passengers along with its then unit Alliance Air. Its biggest rival Indigo, operated by InterGlobe Aviation Ltd., had a share of 60.8% in June. 

The jump is a positive sign for Air India, which is in the middle of an ambitious merger with Tata and Singapore Airlines Ltd.-owned Vistara, expected to be completed by the end of the year. Vistara had a 9.7% share during the month of June. 

Air India rolled out a premium economy class last month to attract more passengers, and is adding new international routes along with entering partnerships with other airlines. It is also revamping its branding ahead of the merger. 

Requests for comment from Air India weren’t immediately answered. 

Meanwhile, Indigo is launching a premium product to woo business travelers in India’s competitive aviation landscape. 

©2024 Bloomberg L.P.