The Centre on Friday increased the limited domestic passenger flight operations capacity to 45 per cent from the earlier 33 per cent.
The decision comes a month after the Centre allowed re-commencement of limited domestic flight operations of about one-third of capacity.
In order, the Ministry of Civil Aviation on Friday increased the capacity limit.
The document stated that the partial modification of the earlier order has been undertaken after review of the current status of scheduled domestic operations vis-a-vis passenger demand for air travel.
Earlier in the day, Union Civil Aviation Minister Hardeep Singh Puri tweeted that in one month since the recommencement of calibrated domestic civil aviation operations in the country "our skies and airports have been busy".
Around 18,92,581 passengers have flown so far on 21,316 flights across the country, he said.
Last week, Puri had said that to ease domestic mobility and accelerate passenger traffic growth, the Centre will allow flights to more destinations.
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Passenger air services were suspended on March 25 due to the nationwide lockdown to check the spread of Covid-19, although domestic air services has resumed in a phased manner.
Subsequently, domestic flight services resumed from May 25. At present, airlines are only allowed to deploy 33 per cent of their total capacity.