New Delhi— Domestic air passenger traffic in India reached an estimated 14.36 million (143.6 lakh) in May 2025, marking a 4.1% year-on-year increase from 13.8 million (138 lakh) in May 2024, according to data released Thursday by ratings agency ICRA.
Airlines ramped up capacity by 5.1% compared to the same period last year, while capacity deployment remained largely unchanged from April 2025 levels.
During the first two months of FY2025 (April–May), domestic traffic totaled 28.68 million (286.8 lakh) passengers, reflecting a 6.2% year-over-year growth.
International travel also showed strong momentum. In April 2025 alone, Indian carriers transported approximately 3.01 million (30.1 lakh) international passengers — a 17.2% increase from the previous year.
For the full fiscal year FY2025 (April 2024–March 2025), domestic air passenger traffic stood at 165.38 million (1,653.8 lakh), a 7.6% rise from FY2024 and 16.8% higher than pre-COVID levels (141.56 million in FY2020).
These figures align with ICRA’s forecast of 7–10% growth for the year. International passenger traffic for Indian carriers in FY2025 reached 33.86 million (338.6 lakh), up 14.1% year-over-year and nearly 49% higher than pre-pandemic levels of 22.73 million (227.3 lakh).
ICRA maintains a “stable” outlook for the Indian aviation industry. However, it warns of potential headwinds including geopolitical tensions — particularly the Israel-Iran conflict — airspace restrictions over Iran and Pakistan, potential increases in insurance premiums following recent aviation accidents, and possible shifts in traveler sentiment.
“The operating costs for the Indian aviation sector have likely increased in recent months due to flight disruptions tied to geopolitical tensions,” the report noted. “Nonetheless, passenger traffic and pricing have so far remained steady.”
ICRA also observed that the industry has maintained pricing strength and stable yields throughout FY2025, though growth tapered due to a high base in FY2024 and weather-related disruptions — including severe heatwaves — during the first half of the fiscal year.
Looking ahead, domestic passenger traffic is expected to grow by 7–10% in FY2026. However, airlines may face pressure on yields as they work to sustain high passenger load factors (PLFs). International traffic for Indian carriers is projected to grow by 15–20% over the same period. (Source: IANS)
