New Delhi, 26 September (IANS). India’s aviation industry remains strong despite operating challenges. In August, domestic air passenger traffic has increased by 0.3 percent on an annual basis. This information was given in a report released on Friday.
Credit rating agency ICRA has kept out Outlook stable for this sector, which is based on the expectations of a slight increase of 4 to 6 percent in domestic air passenger traffic in FY 26.
Analysts have indicated that despite the current problems of the supply-series and engine failure, the low cost of ATF and the strong yield airlines will help manage short-term challenges.
The report said that in August 2025, domestic air passenger traffic was 131.7 lakhs, while in August 2024 it was 131.3 lakhs, showing an increase of 0.3 percent on an annual basis. On a gradual basis, domestic air passenger traffic was 4.5 percent higher in August 2025.
According to the report, in the five months of FY 26, domestic air passenger traffic was 677.5 lakhs, showing a 2.2 percent increase on an annual basis.
The ICRA has revised the international passenger traffic growth estimates for this financial year from 15–20 percent to 13–15 percent, citing across the border tension and hesitation after a recent air accident tragedy. In September 2025, the price of aviation turbine fuel (ATF) decreased by about 1.4 percent on a gradual basis.
According to the report, a large part of the aircraft fleet has stopped due to the engine malfunction and disruption in the supply-chain, which has increased the cost of weight lease and maintenance.
The report said that in FY 25, the industry also faced challenges related to the availability of pilots and cabin crew, resulting in many flights and delays.
However, partial compensation from good yield, high passenger load factor (PLF) and engine OEMs, some are helping to reduce this effect to some extent.
-IANS
ABS/