New Delhi, June 3 (IANS). The ongoing crisis in West Asia and the geopolitical uncertainties arising from it are continuously impacting the recovery of the Indian aviation sector. According to a new report, the impact of this crisis is clearly visible on passenger numbers, flight capacity and overall profitability of airlines.
Indian airlines’ international passenger traffic remained under pressure in April 2026. During this period, about 18 lakh passengers traveled internationally, which was 39 percent less than last year and 1 percent less than March.
According to the latest ‘Aviation Tracker’ report by Equirus Securities, Revenue Passenger Kilometers (RPK) also declined by about 33 percent year-on-year to 7.2 billion. There was also a decline of about 37 percent in the number of flights, although a slight improvement was seen on a monthly basis.
Airlines continued to cut capacity, the report said. Available seat kilometers (ASK) declined by about 28 percent on an annual basis.
However, the decline in passenger demand was more than the reduction in capacity, due to which the Passenger Load Factor (PLF) declined to about 75.5 percent. This is 6.17 percentage points lower than last year and 7.35 percentage points lower than last month.
According to the report, the negative impact of the Middle East conflict continued in April, affecting both passenger numbers and network operations.
According to the report, despite some moderation in fuel prices, the cost still remains at a high level.
The price of Brent crude stood at around $92 per barrel in April, which is 44 percent higher than a year ago. At the same time, the price of Singapore jet fuel was around $ 128 per barrel, which has increased by 65 percent on an annual basis.
The weakness of the rupee against the US dollar also remains a matter of concern for airlines. According to the report, the rupee reached around 95 per dollar, which is about 11 percent weaker than last year.
This has led to significant increases in aircraft lease, maintenance and other dollar-based expenses.
The prices of Aviation Turbine Fuel (ATF) in the country also remain at high levels. The price of ATF in April was around Rs 1.05 lakh per kilolitre, which is 18 percent more than last year and 9 percent more than the previous month.
The report said that due to government interference, the full impact of global fuel inflation has not reached the passengers.
In the domestic aviation sector too, passenger numbers declined to around 1.39 crore during April, which is down 3 per cent on an annual basis and 4 per cent on a monthly basis.
Although airlines continued to add capacity and available seat kilometers (ASKs) increased by nearly 3 percent, seat utilization remained low due to weak demand.
According to the report, the crisis in West Asia currently remains the biggest risk for the aviation sector.
Airlines have taken measures such as capacity adjustments and changes to some routes, but international flights are still under pressure due to changes in travel patterns and weak demand. Due to this, the comprehensive recovery of the aviation sector is being delayed.
–IANS
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