India’s aviation sector experienced a gradual recovery in international traffic in May due to easing geopolitical tensions in West Asia. Domestic demand also remained robust during this period, as reported by Equirus Securities. International passenger traffic carried by Indian airlines increased to around 2.3 million, marking a 24% month-on-month rise. Revenue passenger kilometres (RPKs) also saw an uptick to around 8 billion, up by 12% sequentially.
Flight departures in the sector showed improvement, reaching about 14,200, a 22% monthly increase. Available seat kilometres rose by 10% month-on-month to approximately 10.5 billion. The passenger load factor improved to 76.6%, indicating a gradual normalization of international operations, with passenger demand surpassing capacity recovery.
Global aviation fuel prices saw a significant correction on a sequential basis, offering relief on fuel costs. The average Brent crude price stood at around $72.9 per barrel, showing an 8% year-on-year increase but a 21% month-on-month decline. However, the Indian rupee’s weakness against the US dollar at around 94.7 continued to impact dollar-denominated aircraft-related expenses.
On the domestic front, passenger traffic surged to about 15.4 million, reflecting a 10% year-on-year and 11% month-on-month growth. RPKs also increased to around 15.3 billion, up by 11% annually and sequentially. Capacity additions remained healthy, with Available Seat Kilometres (ASKs) rising to around 17.8 billion, an 8% year-on-year and 6% month-on-month increase. Flight departures also saw growth, reaching around 103,500, up by 5% year-on-year and 6% sequentially.
