New Delhi, August 3: Indian airlines experienced a rise in international traffic in June, according to a report released on Monday. Domestic passenger load factors also remained robust during this period.
Financial services firm Equirus noted that while there was a slight decline in domestic traffic after the peak season, the passenger load factors indicated strong demand and effective capacity utilization in the sector.
The report highlighted that the Indian Rupee weakened against the US Dollar, dropping to approximately 95.4. This depreciation has led to increased costs for aircraft leasing, maintenance, and other operating expenses denominated in dollars.
Domestic aviation demand remained strong, with nearly 13.5 million domestic passengers recorded in June 2026. This figure reflects a year-on-year decrease of 1% and a month-on-month decline of 12%, indicative of the seasonal dip following the summer travel peak.
Revenue passenger kilometers remained stable at around 13.3 billion year-on-year, while available seat kilometers saw a 2% annual decrease due to airlines reducing capacity.
The passenger load factor (PLF) held steady at 85.7%, showing an improvement of 118 basis points year-on-year. This suggests that airlines continued to utilize their aircraft efficiently despite a reduction in passenger numbers.
In June, approximately 2.4 million passengers traveled internationally with Indian airlines, marking a 4% increase compared to May, although still lower than the previous year’s figures.
The report indicated a 6% month-on-month increase in flight departures, signaling a gradual resumption of international flights following previous disruptions, while capacity remained relatively stable.
The airline sector is currently facing a mixed operating environment. The company stated, “Passenger demand remains strong, particularly in the domestic market, where load factors are robust despite seasonal declines.”
However, airlines are under pressure from high aviation fuel prices and the declining value of the currency, both of which are likely to impact profitability in the near future.
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