Decline in Domestic Air Passenger Traffic in India Amid Geopolitical Tensions
Overview of Domestic Air Traffic Trends
Representational Image
New Delhi, May 29: In April 2026, the number of domestic air passengers in India decreased by 2% compared to the same month last year, totaling 140.8 lakh passengers, as reported on Friday amidst ongoing geopolitical challenges.
Last year, the domestic air traffic was recorded at 143.1 lakh passengers for the same month, according to the latest monthly analysis from ICRA regarding the aviation sector.
When compared to March 2026, there was also a 2% decline from the 143.7 lakh passengers reported then.
The report highlighted that airlines reduced their capacity deployment in April 2026 by 0.6% compared to the previous year and by 1.4% from March 2026.
For the entire financial year 2025-26, domestic air passenger traffic reached 1,677.4 lakh, reflecting a modest year-on-year increase of 1.4%, aligning with ICRA’s growth forecast of 0-3%.
International passenger traffic for Indian airlines saw a growth of 3.9%, reaching 350 lakh passengers during FY2026, which was below the earlier projected growth of 7-9%.
ICRA revised its outlook for the Indian aviation sector from “Stable” to “Negative” in March 2026, citing anticipated declines in profitability due to rising aviation turbine fuel (ATF) prices, the rupee's depreciation against the US dollar, and disruptions in international airspace due to escalating geopolitical tensions in West Asia.
The agency cautioned that factors such as flight cancellations, airspace restrictions, and increasing airfares due to fuel surcharges may hinder passenger traffic growth in the near future.
Furthermore, while the Directorate General of Civil Aviation (DGCA) has lifted airfare caps that were imposed in December 2025, demand could decrease if ticket prices surge significantly.
According to the report, several airlines have already started to reduce international flights due to demand fluctuations and rising costs associated with the conflict in West Asia.
ICRA indicated that this trend could reverse the growth in international seat capacity share observed during FY2026.