The International Air Transport Association (IATA) Friday reported that India's domestic passenger traffic increased by 12.5 percent in December 2014.
The country's domestic traffic had spiked 14.2 percent in November and by 16.3 percent in October.
India's domestic capacity in the month under review rose marginally 0.4 percent when compared to December, 2013.
According to IATA, for the full year 2014, Indian domestic passenger traffic grew by eight percent.
India's domestic passenger growth rate has been attributed to many factors including a revived confidence over the new business-supportive government, generation of strong demand owing to market stimulation measures introduced by airlines.
For full year 2014 global passenger traffic demand increased 5.9 percent compared to the full year of 2013. In December the passenger traffic growth stood at 6.1 percent.
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"Demand for the passenger business did well in 2014. With a 5.9 percent expansion of demand, the industry out-performed the 10-year average growth rate," said Tony Tyler, director general and chief executive, IATA.
"Overall a record 3.3 billion passengers boarded aircraft last year-some 170 million more than in 2013."
Earlier, data furnished by the civil aviation ministry, showed that domestic air passenger traffic increased by 15.29 percent in December to 64.40 lakh passengers -- up from 55.86 lakh in the corresponding month last year.
The data showed that domestic passengers carried in 2014 rose 9.70 percent and stood at 673.83 lakh from 614.26 lakh ferried in 2013.
Low cost carrier IndiGo achieved the highest market share at 36.1 percent followed by Jet Airways (18.7), Air India (18.6), SpiceJet (10.4), GoAir (9.3) and JetLite (4.6 percent).
AirAsia India reported a market share of 1.1 percent. So did Air Costa.
Total market share for 2014 was also led by IndiGo at 31.8 percent, Air India (18.4), Jet Airways (17.4), SpiceJet (17.4), GoAir (9.2) and JetLite at (4.3).
Air Costa's market share for 2014 stood at 0.9 percent and AirAsia India had a market share of 0.5 percent.