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FY26 sees 1.4% growth in India’s domestic air passenger traffic: Icra
Apr-29-2026

The ratings agency -- Icra has said that India’s domestic air passenger traffic increased 1.4 per cent year-on-year to 1,677.4 lakh in FY26, consistent with its forecast of 0-3 per cent. For FY25, the combined passenger count for all Indian carriers was 1,653.8 lakh. It said for March this year, the domestic air passenger traffic rose 1 per cent year-on-year to 146.8 lakh. Moreover, it said that airlines operated with 3 per cent less capacity in March 2026 compared to the same month the previous year.

The agency noted that it is estimated that the domestic aviation industry operated at a passenger load factor of 89.5 per cent in the reporting month compared to 86 per cent in March 2025. Further, it stated that international passenger traffic for Indian carriers in February this year stood at 28.5 lakh, a decline of 0.3 per cent year-on-year and a sequential fall of 16 per cent. For the April-February period of the previous fiscal, it was seen at 331.5 lakh, a growth of 7.7 per cent.  

Besides, it noted that average aviation turbine fuel (ATF) prices, announced on April 1, 2026, rose 9.2 per cent sequentially and 18.2 per cent year-on-year on account of the West Asian conflict. While crude oil prices rose 45.5 per cent month-on-month in March this year due to the geopolitical crisis, the pass-through to ATF prices was moderated. Although the civil aviation ministry capped domestic ATF price increases at 25 per cent sequentially, the oil marketing companies raised ATF prices by only 9.2 per cent sequentially in April 2026 for domestic operations, moderating the immediate cost impact on the aviation sector.


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