Overall passenger traffic grew by around 2% in FY2026 to reach 420 million, amid disruptions caused by FDTL restrictions, cross-border tensions (in Q1 FY2026) and maintenance and supply-side constraints of airlines affecting passenger traffic growth. Further, the geopolitical tensions surrounding the Iran-US-Israel conflict had a negative impact on international passenger traffic. 

Further, as per ICRA’s estimates, passenger traffic is likely to grow by 1-3% in FY2027 to reach 424-432 million. Prolonged Iran-US-Israel tensions and elevated fuel prices remain a key downside risk to passenger traffic growth, given that West Asia accounts for nearly 25-30% of India's international traffic.

• Exhibit : Yearly trends in total passenger traffic* (in million)