New Delhi, May 29 (IANS) Domestic air passenger traffic in India fell 2 per cent year-on-year (YoY) in April 2026 to 140.8 lakh passengers, amid geopolitical disruptions, a report said on Friday.

The domestic air traffic stood at 143.1 lakh passengers in the same month last year, according to ICRA’s latest monthly report on the aviation sector.

On a sequential basis, traffic was also lower by 2 per cent from 143.7 lakh passengers recorded in March 2026, the report said.

The report noted that airlines’ capacity deployment in April 2026 was 0.6 per cent lower than the year-ago period and 1.4 per cent lower compared to March 2026.

For the full financial year 2025-26, domestic air passenger traffic stood at 1,677.4 lakh passengers, registering a modest year-on-year growth of 1.4 per cent, in line with ICRA’s estimate of 0-3 per cent growth.

International air passenger traffic for Indian carriers grew 3.9 per cent to 350 lakh passengers during FY2026, lower than the agency’s earlier estimate of 7-9 per cent growth.

ICRA said it had revised its outlook on the Indian aviation industry to “Negative” from “Stable” in March 2026 due to the expected weakening in profitability caused by higher aviation turbine fuel (ATF) prices, depreciation of the rupee against the US dollar and disruption in international airspace availability following the escalation of geopolitical conflict in West Asia.

The agency warned that flight cancellations, airspace closures and rising airfares due to fuel surcharges are likely to weigh on passenger traffic growth in the coming months.

It also noted that although the Directorate General of Civil Aviation (DGCA) has removed airfare caps introduced in December 2025, demand could soften if ticket prices rise sharply.

According to the report, some airlines have already announced curtailment of international flights because of demand disruptions and escalating costs linked to the West Asian conflict.

ICRA said this could reverse the increase in international seat capacity share witnessed during FY2026.

–IANS

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