New Delhi, June 19 (IANS) Domestic air passenger traffic was estimated at 143.6 lakh in the month of May, 4.1 per cent higher than 138.0 lakh in May last year, a report showed on Thursday.

The airlines’ capacity deployment in May 2025 was 5.1 per cent higher than in May 2024 and steady compared to April 2025, according to ICRA estimates.

For the April-May period, domestic air passenger traffic was 286.8 lakh, an yearly growth of 6.2 per cent.

For April, international passenger traffic for Indian carriers was around 30.1 lakh, a YoY growth of 17.2 per cent.

For FY25 (April 2024–March 2025), domestic air passenger traffic stood at around 1,653.8 lakh, a YoY growth of 7.6 per cent and 16.8 per cent higher than the pre-Covid level of around 1,415.6 lakh in FY2020.

“This was in line with ICRA’s estimates of 7-10 per cent YoY growth for FY2025. Further, for FY2025, international passenger traffic for Indian carriers stood at 338.6 lakh, a YoY growth of 14.1 per cent (largely in line with ICRA estimates), and 49.0 per cent higher than the pre-Covid level of 227.3 lakh,” according to the report.

ICRA’s outlook on the Indian aviation industry is stable. However, emerging geopolitical and operational headwinds — in the form of rising crude oil prices (because of the Israel-Iran conflict), closure of the air space over Iran and Pakistan (for Indian carriers), possible rise in insurance premia (after the recent airplane crash), and possible hesitation to travel — warrant close monitoring for potential downside risks.

“The operating costs for the Indian aviation industry are likely to have risen in the past couple of months (because of flight cancellations and other operating challenges in the aftermath of the India-Pakistan conflict), however, overall passenger traffic and pricing have so far held steady,” according to the report.

The industry is estimated to have witnessed steady pricing power during FY2025 as well compared to FY2024 with stable yields.

Domestic air passenger traffic growth tapered to 7.6 per cent in FY2025, in line with expectations, given the high base of FY2024 and lower passenger traffic in H1 FY2025, which were impacted by severe heatwaves and other weather-related disruptions.

“The domestic air passenger traffic is estimated to grow at 7-10 per cent in FY2026. However, the yields may come under pressure, as airlines strive to maintain adequate passenger load factors (PLFs). International passenger traffic for Indian carriers is expected to grow by 15-20 per cent in FY2026,” said the report.

–IANS

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