New Delhi — Indian airlines recorded a sequential improvement in international passenger traffic in June, even as elevated fuel prices and a weaker rupee increased operating costs, according to a report released Monday.
Financial services firm Equirus said domestic traffic eased after the peak summer travel period, but passenger load factors remained healthy, reflecting resilient demand and disciplined capacity management by airlines.
Higher input costs remained the industry’s main challenge. Brent crude averaged about $87.30 a barrel in July, up 20% from both a year earlier and the previous month, while Singapore jet fuel prices rose to nearly $155 a barrel, an increase of 71% year over year.
The rupee weakened to about 95.4 against the U.S. dollar, raising the cost of aircraft leases, maintenance and other dollar-denominated expenses.
Domestic airlines carried about 13.5 million passengers in June 2026, down 1% from a year earlier and 12% from May as demand moderated following seasonal highs.
Revenue passenger kilometers remained broadly unchanged from a year earlier at 13.3 billion. Available seat kilometers fell 2% as airlines reduced capacity.
Passenger load factor rose 118 basis points year over year to 85.7%, indicating that airlines continued to use their aircraft efficiently despite lower passenger volumes.
International passenger traffic carried by Indian airlines increased 4% from May to about 2.4 million in June, though it remained below the level recorded a year earlier.
Flight departures rose 6% month over month, while capacity remained broadly stable, suggesting a gradual recovery in international operations following disruptions in previous months.
Equirus described the airline industry’s operating environment as mixed.
“Passenger demand continues to remain healthy, especially in the domestic market where load factors remain robust despite seasonal moderation,” the firm said.
However, high aviation fuel prices and the depreciation of the rupee are expected to continue pressuring airline profitability in the near term, the report said. (Source: IANS)
