Domestic Passenger Traffic Soars in March

MUMBAI: Domestic passenger traffic reached a remarkable 148.8 lakh passengers in March, showcasing significant year-over-year (YoY) and sequential growth, as per the latest report from credit rating agency ICRA.

This surge represents an 11.3% YoY increase and a 5.9% rise from February 2025, with the fiscal year 2025 recording a total of 1,657.1 lakh domestic passengers, a 7.8% YoY growth.

Stable Outlook for FY2026

The aviation sector maintains a stable outlook for FY2026, with domestic passenger traffic projected to grow by 7-10%. Challenges remain in maintaining yield levels and ensuring adequate passenger load factors.

International traffic for Indian carriers is expected to grow by 15-20% in both FY2025 and FY2026, indicating robust recovery and expansion beyond pre-Covid levels.

Challenges and Opportunities

Despite positive trends, the industry faces challenges such as elevated ATF prices, currency fluctuations, and the need for strategic fare management to sustain profit margins.

Supply-chain issues and engine failures, particularly with Pratt and Whitney engines, have impacted capacity, but improvements are expected in FY2026.