Domestic air passenger traffic in India declined by 2% year-on-year in April 2026 to 140.8 lakh passengers. This decrease was attributed to geopolitical disruptions, as per a report by ICRA released on Friday.
Compared to the same period last year, domestic air traffic was down from 143.1 lakh passengers. Additionally, on a sequential basis, there was a 2% decrease from 143.7 lakh passengers recorded in March 2026, according to the report.
The report highlighted that airlines’ capacity deployment in April 2026 was 0.6% lower than the previous year and 1.4% lower compared to March 2026.
For the full financial year 2025-26, domestic air passenger traffic totaled 1,677.4 lakh passengers, showing a modest year-on-year growth of 1.4%, aligning with ICRA’s growth estimate of 0-3%.
International air passenger traffic for Indian carriers saw a 3.9% increase to 350 lakh passengers during FY2026, falling short of the agency’s earlier growth projection of 7-9%.
ICRA revised its outlook on the Indian aviation industry to “Negative” from “Stable” in March 2026 due to anticipated profitability weakening caused by factors like higher aviation turbine fuel (ATF) prices and geopolitical conflicts in West Asia.
The agency cautioned that flight cancellations, airspace closures, and rising airfares due to fuel surcharges could impact passenger traffic growth in the upcoming months. Despite the removal of airfare caps by the Directorate General of Civil Aviation (DGCA) in December 2025, a sharp rise in ticket prices might soften demand.
Some airlines have already announced reductions in international flights due to demand disruptions and increased costs related to the West Asian conflict, potentially reversing the rise in international seat capacity share observed during FY2026.
