Domestic air passenger traffic to grow by 4-6 pc in FY26, Oct sees 142.8 lakh travellers

Domestic air passenger traffic in India is expected to grow by 4-6% in FY26, according to a recent report. October saw 14.28 million travelers, a 4.5% year-on-year increase and a 12.9% sequential rise from September. This growth is supported by increased capacity, with domestic departures reaching approximately 99,816 in October, a 10.8% sequential increase and a 1.7% year-on-year rise. The industry's Passenger Load Factor (PLF) also improved, reaching an estimated 84.7% in October.

Despite the positive outlook, the report suggests that growth prospects for the current fiscal year may be moderate due to cross-border tensions, global disruptions, travel hesitancy following the June 2025 aircraft tragedy, and recent disruptions related to Air Traffic Control (ATC) operations. International passenger traffic for Indian carriers is expected to grow by 13–15% in FY26, supported by expanded international routes and increased aircraft availability. In September 2025, Indian carriers transported 2.83 million international passengers, a 5.8% year-on-year increase.

Rising Aviation Turbine Fuel (ATF) prices continue to pose a challenge to airline cost structures. In November, ATF prices were up 4.4% year-on-year and 0.8% sequentially from October. With fuel accounting for 30–40% of airlines’ operating costs, sustained price escalations remain a key area of concern for the industry.

The Directorate General of Civil Aviation (DGCA) has proposed new guidelines to enhance passenger convenience, allowing ticket cancellations or amendments within 48 hours of booking without penalties. This applies to flights departing more than five days later for domestic routes and over 15 days for international travel. Refunds will be required to be processed within 21 working days.