India domestic air traffic hits 146.8 lakh in March, FY26 total up 1.4%
Synopsis
India's domestic skies stayed busy in FY26 with 1,677.4 lakh passengers, but the real story is what comes next — ICRA sees 6–8% growth in FY27 even as surging ATF prices, a weakening rupee, and West Asian conflict-driven fuel costs threaten to ground that optimism.
Key Takeaways
India's domestic air passenger traffic reached 146.8 lakh in March 2026 , up 1% YoY and 4.4% MoM .
Full-year FY26 domestic traffic stood at 1,677.4 lakh , a 1.4% annual rise, per ICRA .
Domestic PLF improved to 89.5% in March 2026, up from 86% a year earlier.
ATF prices rose 9.2% sequentially and 18.2% YoY as of 10 April 2026 , driven by the West Asian conflict.
The Ministry of Civil Aviation capped domestic ATF price increases at 25% MoM and cut landing and parking charges by 25% for three months from April 2026 .
ICRA projects domestic traffic growth of 6–8% in FY2027 , subject to airfare and fuel cost risks.
India's domestic air passenger traffic rose 1 per cent year-on-year in March 2026 to 146.8 lakh, while also surging 4.4 per cent on a monthly basis, according to a report released on Tuesday, 28 April 2026 by ratings agency ICRA. For the full financial year, domestic air passenger traffic stood at 1,677.4 lakh in FY26, up 1.4 per cent on an annual basis.
Key Traffic Numbers
Domestic capacity deployment in March 2026 was 3 per cent lower than the previous year but 10.6 per cent higher month-on-month, partly owing to the smaller number of days in February. The domestic aviation industry operated at a Passenger Load Factor (PLF) of 89.5 per cent in March 2026, up from 86 per cent in March 2025 and slightly above 89.3 per cent in February 2026. PLF measures the percentage of available seating capacity filled by paying passengers.
On the international front, traffic for Indian carriers stood at 331.5 lakh in the April–February 2026 period, registering a year-on-year growth of 7.7 per cent. However, in February 2026 alone, international passenger traffic declined 0.3 per cent YoY and fell 16 per cent sequentially to 28.5 lakh.
FY27 Growth Outlook
ICRA estimated that domestic air passenger traffic growth would be in the range of 6–8 per cent in FY2027. The agency flagged downside risks, noting that a significant spike in airfares could dampen demand.
Point of View
But the cost environment is quietly tightening. ATF prices up 18.2% year-on-year — even after the government's cap — combined with a depreciating rupee, means airline margins are under real pressure heading into FY27. The Ministry's 25% landing-charge relief is a band-aid, not a structural fix. ICRA's 6–8% traffic growth forecast for FY27 is credible only if carriers resist passing fuel costs on to passengers — a difficult ask when crude volatility from the West Asian conflict remains unresolved.
NationPress
1 May 2026
Frequently Asked Questions
How much did India's domestic air passenger traffic grow in March 2026?
India's domestic air passenger traffic rose 1 per cent year-on-year to 146.8 lakh in March 2026, and also grew 4.4 per cent compared to February 2026, according to an ICRA report released on 28 April 2026.
What was India's total domestic air traffic in FY26?
India's domestic air passenger traffic totalled 1,677.4 lakh in FY26, up 1.4 per cent on an annual basis, as per ICRA's report.
What is the aviation traffic growth forecast for FY27?
ICRA has estimated domestic air passenger traffic growth of 6–8 per cent in FY2027. The agency cautioned that a significant spike in airfares could pose downside risks by suppressing demand.
How have ATF prices been affected by the West Asian conflict?
Average ATF prices rose 9.2 per cent sequentially and 18.2 per cent year-on-year as of 10 April 2026, driven by the West Asian conflict pushing up crude oil prices. The Ministry of Civil Aviation capped domestic ATF price increases at 25 per cent month-on-month to limit the impact on airlines.
What relief measures has the government announced for domestic airlines?
The Ministry of Civil Aviation announced a 25 per cent reduction in landing and parking charges for domestic airlines for three months starting April 2026, providing some cost relief amid elevated fuel prices and a weaker rupee.
