The domestic air passenger traffic for October is estimated at 142.8 lakh, recording a year-on-year growth of 4.5 per cent and a robust sequential uptick of 12.9 per cent from September, a report showed on Tuesday.
ICRA maintains a ‘Stable’ outlook on the Indian aviation sector, projecting domestic passenger traffic to grow by 4-6 per cent in FY26. This follows a 7.6 per cent growth in FY2025, when total passenger volumes reached 1,653.8 lakh.
This momentum in travel demand was supported by an expansion in capacity, with domestic departures reaching approximately 99,816 during October, representing a sequential increase of 10.8 per cent and a 1.7 per cent rise year-on-year, according to the report.
Operational efficiency also improved, as the industry’s Passenger Load Factor (PLF) reached an estimated 84.7 per cent, higher than 82.4 per cent in October 2024 and 81.4 per cent in September 2025.
However, growth prospects for the current fiscal is expected to remain moderate due to cross-border tensions, global disruptions, travel hesitancy post the June 2025 aircraft tragedy and recent disruptions related to Air Traffic Control (ATC) operations, said the report.
The report further stated that on the international side, Indian carriers carried 28.3 lakh passengers in September 2025, a 5.8 per cent year-on-year increase.
ICRA expects international passenger traffic for Indian carriers to grow in the range of 13–15 per cent in FY26, supported by expanded international routes and increased aircraft availability.
Meanwhile, rising Aviation Turbine Fuel (ATF) prices continue to challenge airline cost structures.
In November, ATF prices were up 4.4 per cent year-on-year and 0.8 pr cent sequentially from October. With fuel accounting for 30–40 per cent of airlines’ operating costs, sustained price escalations remain a key area of concern for the industry, the report noted.
In a move aimed at enhancing passenger convenience, the Directorate General of Civil Aviation (DGCA) has proposed new guidelines allowing ticket cancellations or amendments within 48 hours of booking without penalties, applicable for flights departing more than five days later on domestic routes and over 15 days for international travel.
Refunds will be processed within 21 working days, ensuring quicker redress for passengers.
