New Delhi, 12 July (IANS). According to a latest ICRA report, a strong growth of India’s domestic air passengers in FY 2026 is estimated to have a strong growth of 7-10 percent. The report has a stable approach to the country’s civil aviation sector.
The report stated that the number of international passengers for Indian aviation companies is expected to increase by 15-20 percent in FY 2026; However, it remains supervised in view of recent geopolitical concerns.
The number of domestic air passengers for June 2025 is estimated at 138.7 lakhs, which is 5.1 percent more than 132.1 lakhs in June 2024. However, it saw a slight decline of 1.3 percent on a gradual basis.
In June 2025, the airline’s capacity deployment was 4.9 percent higher than June 2024.
The number of domestic air passengers for the first quarter of FY 2026 (April-June 2025) was 422.4 lakhs, which shows an increase of 5.1 percent on an annual basis.
The number of international passengers for Indian carriers for May 2025 was 29.7 lakhs, showing an increase of 7.3 percent on an annual basis.
According to the ICRA report, for the first two months of FY 2026, the number of international passengers for Indian carriers was 59.8 lakhs, showing an increase of 12.1 percent on an annual basis.
The cancellation of flight after India-Pakistan tension and other operational challenges is expected to increase the operational cost of the Indian aviation industry in the last few months. Nevertheless, the report states that so far the total number and pricing of the total passengers have been stable.
The ICRA’s approach to the Indian aviation industry is stable. However, according to the report, rising crude oil prices due to emerging geopolitical and operating adverse conditions such as Israel-Iran struggle, the closure of airspace over Iran and Pakistan for Indian aviation companies, potential hikes in insurance premiums and potential hesitation in traveling after recent aircraft accidents require strict urgent negative risks.
The report also stated that the aviation industry saw stable pricing power and stable return in FY 2025.
The report stated that given the high traffic in the highest base of the financial year 2024 and the low traffic in the first half of FY 2025, which was affected by the scorching heat and other meteorological disruptions, in accordance with the expectations of the ICRA, the growth of domestic aircraft in FY 2025 declined to 7.6 percent in FY 2025.
-IANS
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