Three interrelated metrics are tracked by the indicator Capacity vs. Demand vs. Passenger (PAX) Load Factor in the Domestic Market in India: load factor (the percentage of offered seats that are filled with paying passengers), demand (the number of passengers actually travelling or revenue passenger kilometres), and capacity (the number of available seat kilometres or seats offered by airlines). Airlines are filling the majority of their available seats, as evidenced by this high ratio, which shows a solid alignment between capacity deployment and travel demand. This measure is important for several parties involved: A high load factor is interpreted by airlines and industry observers as a sign of improved financial performance and effective aircraft use. Comparing capacity expansion to demand growth helps infrastructure planners and aviation regulators determine if the network is growing in line with market demands or whether there is either under-capacity (which could result in higher fares and unmet demand) or over-capacity (which could risk poor occupancy). Given the high demand compared to capacity in India, the domestic market appears to have significant development potential. However, in order to prevent bottlenecks, infrastructure expansion (aircraft, airports, and air traffic control) must keep up. These measures are used by policymakers to create financial support programs, airport expansion, and route licensing, guaranteeing that India can continue to be one of the aviation markets with the quickest growth rates.