What Factors Led to India's Air Passenger Traffic Reaching 202 Million in H1FY26?
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Synopsis
India's air passenger traffic has surged to 202 million in H1FY26, marking a significant 2.6% increase compared to last year. With domestic and international traffic on the rise, this report delves into the factors influencing this growth and what it means for the aviation sector moving forward.
Key Takeaways
- Total air passenger traffic in H1FY26 reached 202 million.
- Domestic traffic grew by 1.6%, while international traffic increased by 6.9%.
- Projected passenger traffic for FY26 is 430 million.
- Profit before interest, taxes, depreciation, and amortization expected to rise over 40% for 11 airports.
- Medium-term growth forecasted at 8-9% CAGR.
New Delhi, Nov 12 (NationPress) India's total air passenger traffic has seen a growth of 2.6 percent year-on-year, reaching 202 million in H1FY26, up from 197 million the previous year, according to a report released on Wednesday.
Within this, domestic traffic in India increased by 1.6 percent, while international traffic grew by 6.9 percent, as noted by the ratings agency CareEdge Ratings.
The report indicates that passenger traffic in India is projected to hit 430 million in FY26, a revision from the initial estimate of 445 million.
It highlighted that the robust operating income is expected to lead to a substantial increase in profit before interest, taxes, depreciation, and amortization (PBILDT), with a year-on-year growth exceeding 40 percent across 11 airports.
The forecast suggests that domestic passenger traffic will rise by 3.5 percent for the entire fiscal year, with international traffic anticipated to grow by around 8 percent. The latter half of FY26 is expected to benefit from the festive season and the opening of two new greenfield airports, which will alleviate supply constraints and promote traffic growth.
Palak Vyas, Associate Director of CareEdge Ratings, noted, "The downward revision in growth was influenced by cross-border tensions in Q1 FY26, reduced aircraft availability due to fleet-wide inspections following a fatal incident in June 2025, and delays in the delivery of wide-bodied aircraft."
Vyas added, "In the medium term, with passenger traffic projected to grow at a CAGR of 8-9 percent, the airport sector's outlook remains positive. However, the timely delivery of wide-bodied aircraft will be crucial for growth in international traffic."
The optimistic outlook is bolstered by expansions in airport and airline capacity, along with strong air travel demand driven by favorable demographics and a burgeoning middle class.
The financial risk profile of airport operators is expected to stay robust, with an aggregate aero revenue for the 11 analyzed airports predicted to increase by 50 percent year-on-year.
Point of View
It's clear that India's aviation sector is on a robust growth trajectory, with passenger traffic trends indicating a vibrant future. The expected increase in both domestic and international travel, supported by demographic shifts and infrastructure enhancements, signifies a pivotal moment for the industry. Our commitment at NationPress remains steadfast in delivering accurate and timely updates on these developments.
NationPress
12/11/2025
Frequently Asked Questions
What was the air passenger traffic in India for H1FY26?
India's air passenger traffic for H1FY26 reached 202 million, reflecting a 2.6% year-on-year growth.
How did domestic and international traffic perform?
Domestic traffic grew by 1.6%, while international traffic saw a more significant increase of 6.9%.
What is the future projection for air traffic in FY26?
Passenger traffic is projected to reach 430 million in FY26, revised from an earlier estimate of 445 million.
What factors contributed to the revision in growth projections?
The downward revision was influenced by cross-border tensions, reduced aircraft availability due to inspections, and delays in new aircraft deliveries.
What is the expected growth rate for the aviation sector?
Passenger traffic is expected to grow at a CAGR of 8-9% over the medium term.
