Is Domestic Air Passenger Traffic Rising in May?
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Synopsis
As domestic air passenger traffic soars to 143.6 lakh in May, a 4.1% rise from last year, the aviation sector faces challenges and opportunities. This report delves into the latest trends, projections, and potential risks affecting the industry.
Key Takeaways
- Domestic air passenger traffic reached 143.6 lakh in May.
- Traffic grew by 4.1% year-on-year.
- ICRA projects growth of 7-10% for FY2026.
- International traffic showed a 17.2% growth in April.
- Geopolitical tensions could impact future growth.
New Delhi, June 19 (NationPress) Domestic air passenger traffic reached 143.6 lakh in May, marking a 4.1% increase from 138.0 lakh in the same month last year, according to a report released on Thursday.
Airlines increased their capacity deployment by 5.1% in May 2025 compared to May 2024, remaining stable when compared to April 2025, as per ICRA estimates.
During the April-May period, domestic air passenger traffic totaled 286.8 lakh, achieving a yearly growth of 6.2%.
In April, international passenger traffic for Indian airlines was approximately 30.1 lakh, reflecting a year-on-year growth of 17.2%.
For the fiscal year 2025 (April 2024–March 2025), domestic air passenger traffic stood at around 1,653.8 lakh, showing a year-on-year growth of 7.6% and a 16.8% increase compared to pre-Covid levels of about 1,415.6 lakh in FY2020.
“This aligns with ICRA’s projections of 7-10% year-on-year growth for FY2025. Also, for FY2025, international passenger traffic for Indian carriers reached 338.6 lakh, which is a 14.1% increase year-on-year, and 49.0% higher than the pre-Covid figure of 227.3 lakh,” the report stated.
ICRA maintains a stable outlook for the Indian aviation sector. However, the industry faces several emerging challenges, including rising crude oil prices due to the Israel-Iran conflict, restricted airspace over Iran and Pakistan for Indian carriers, potential increases in insurance premiums following recent incidents, and possible traveler hesitance—all of which require careful monitoring for downside risks.
“Operating costs for the Indian aviation sector have likely surged in recent months due to flight cancellations and other operational difficulties stemming from the India-Pakistan conflict. Yet, overall passenger traffic and pricing have remained stable,” the report noted.
The industry has experienced consistent pricing power during FY2025 compared to FY2024, with stable yields.
Domestic air passenger traffic growth has slowed to 7.6% in FY2025, consistent with expectations given the high base of FY2024 and lower traffic in the first half of FY2025, which were affected by severe heatwaves and other weather disruptions.
“Domestic air passenger traffic is projected to grow between 7-10% in FY2026. However, yields might face pressure as airlines work to maintain adequate passenger load factors (PLFs). International passenger traffic for Indian carriers is anticipated to increase by 15-20% in FY2026,” the report concluded.
Point of View
It's clear that while the growth in domestic air passenger traffic indicates a resilient recovery in the aviation sector, we must remain vigilant about external factors that could impact this momentum. The aviation industry must navigate these challenges proactively to ensure sustained growth.
NationPress
19/06/2025
Frequently Asked Questions
What was the domestic air passenger traffic in May?
Domestic air passenger traffic was estimated at 143.6 lakh in May.
How much did the passenger traffic grow compared to last year?
The traffic grew by 4.1% compared to 138.0 lakh in May last year.
What are the projections for air traffic growth in FY2026?
Domestic air passenger traffic is expected to grow by 7-10% in FY2026.
What challenges does the aviation sector face?
Challenges include rising oil prices, geopolitical tensions, and operational issues stemming from recent conflicts.
How did international passenger traffic perform?
International passenger traffic for Indian carriers was approximately 30.1 lakh in April, showing a 17.2% year-on-year increase.
