Geopolitical tensions and disruptions from the West Asia crisis are hindering India’s aviation sector recovery. In April 2026, Indian carriers saw international passenger traffic at about 1.8 million passengers, a 39% year-on-year decrease and 1% month-on-month decline. Revenue Passenger Kilometres (RPKs) fell by approximately 33% year-on-year to 7.2 billion, with flight departures down by around 37% year-on-year despite a slight sequential improvement, as per the ‘Aviation Tracker’ report by Equirus Securities.
Capacity rationalization continued, with Available Seat Kilometres (ASKs) dropping by about 28% year-on-year. However, demand weakness exceeded capacity cuts, resulting in a significant decline in the passenger load factor (PLF) to approximately 75.5%, down 617 basis points year-on-year and 735 basis points month-on-month. The adverse effects of the West Asia conflict persisted through April, impacting traffic volumes and network efficiency, as highlighted in the report.
Fuel costs remained high despite some moderation. Brent crude was priced at around $92 per barrel, marking a 44% increase year-on-year, while Singapore jet fuel was around $128 per barrel, up 65% year-on-year. The report also noted significant rupee depreciation against the US dollar, standing at about 95, an 11% increase year-on-year, leading to higher dollar-linked expenses like aircraft leases and maintenance costs.
Domestic aviation turbine fuel (ATF) prices were approximately Rs 105.6 thousand per kilolitre, up 18% year-on-year and 9% month-on-month. Government intervention continued to restrict the pass-through of global fuel inflation. On the domestic front, passenger traffic dropped to about 13.9 million passengers, down 3% year-on-year and 4% month-on-month, with capacity additions resulting in lower utilization due to ASKs rising by about 3% year-on-year. The West Asia crisis remains a significant concern for the aviation sector, impacting international operations and delaying broader recovery efforts.
