Domestic air passenger traffic in India rose by 5.1% year-on-year in June 2025, reaching 138.7 lakh compared to 132.1 lakh in June 2024.
Airlines' capacity deployment increased by 4.9% compared to June 2024 but dropped by 2.3% from May 2025.
ICRA maintains a 'Stable' outlook on the Indian aviation industry despite potential downside risks from rising crude oil prices, airspace closures, and operational challenges.
ICRA projects domestic air passenger traffic to grow by 7-10% in FY2026, while international passenger traffic for Indian carriers is expected to increase by 15-20% in the same fiscal year.