New Delhi, May 29: Due to rising tensions in the Middle East, India experienced a 2% decline in domestic air passenger traffic in April compared to the previous year. This information was revealed in a report released on Friday.
According to the latest report from ICRA, 14 million passengers flew domestically in India in April 2026, down from 14.3 million during the same period last year.
On a monthly basis, there was also a 2% decrease in domestic air passenger traffic, which stood at 14.3 million in March.
The report indicated that airline capacity deployment in April 2026 saw a year-on-year decline of 0.6%, and a 1.4% decrease compared to March 2026.
In the fiscal year 2025-26, 167.7 million passengers flew domestically, reflecting a slight annual increase of 1.4%.
International passenger traffic for Indian airlines rose by 3.9% during fiscal year 2026, reaching 35 million passengers. However, this growth was lower than the agency’s earlier estimate of 7-9%.
ICRA noted that it has revised its outlook for the Indian aviation industry from “stable” to “negative.” This change is attributed to rising aviation turbine fuel (ATF) prices, depreciation of the rupee against the US dollar, and geopolitical conflicts in West Asia disrupting the availability of international airspace, potentially impacting profitability.
The agency warned that upcoming months may see negative effects on passenger traffic growth due to flight cancellations, airspace closures, and increased airfares from fuel surcharges.
The report stated that the Directorate General of Civil Aviation (DGCA) removed the airfare cap implemented in December 2025. However, if ticket prices rise rapidly, demand may decline.
Additionally, some airlines have already announced cuts to international flights due to demand disruptions linked to the West Asian conflict and rising costs.
ICRA mentioned that this could reverse the increase in international seat capacity share observed during fiscal year 2026.
Leave a Comment