Low fare airline SpiceJet has crossed Jet Airways in market share figures in July, to become the second largest domestic airline in the country, with only IndiGo ahead of them.

This has also led SpiceJet being the only Indian airline to report a rise in market share last month, despite an increasing financial burden.

SpiceJet stated it controlled 20.9 percent of the market in July, compared to the 19 percent a month earlier. Jet Airways and JetLite's shares were at 19.6 percent in July.

"Our increase in loads and share is the result of our new network, improved branding and product, and most importantly, our dynamic pricing and revenue management approach where we believe flying empty seats, which is the ultimate perishable commodity, is a waste especially for budget airlines," Economic Times quoted Sanjiv Kapoor, Chief Operating Officer (COO), SpiceJet.

"The increase in our loads this year has not been at the expense of yields. We are doing what is best for the airline, as well as customers. So, it is a win-win," he added.

The carrier also posted an industry-best load factor figure of 79.4 percent.

SpiceJet's achievements followed aggressive discounted rates. Analysts claim that the airline is offering fares lower than its cost. The airline had reported a net loss of Rs 124 crore in the April-June quarter of this year.

The carrier had the industry's highest seat occupancy levels at 81.4 percent in 2013. SpiceJet steadily gained the market share from 17.8 percent in March. Meanwhile, Jet Airways lost its market share rapidly this year from a 25.2 percent in January.

In the tickets sale, SpiceJet's 79.4 percent (against 67.9 percent in July last year) was at least 10 percentage points higher than those of GoAir and Indigo, reported Business Standard.

"July is a low season for all airlines and it is not surprising to see occupancy levels dipping. Even IndiGo, which shows high occupancy levels, has reported a seat factor of 67 per cent. What is it that SpiceJet did to achieve a higher seat factor? It defies logic," a senior official of a rival airline stated.