For October 2025, domestic air passenger traffic was estimated1 at 142.8 lakh, 4.5% higher than 136.6 lakh in October 2024 and 12.9% higher than 126.4 lakh in September 2025. The airlines’ capacity deployment in October 2025 was 1.7% higher than October 2024 and 10.8% higher than September 2025. For 7M FY2026 (April- October 2025), domestic air passenger traffic remained at 944.5 lakh, reflecting a YoY growth of 1.6%. For September 2025, international air passenger traffic for Indian carriers was 28.3 lakh, indicating a YoY growth of 5.8% and a sequential decline of 5.7%. For H1 FY2026 (April-September 2025), international air passenger traffic for Indian carriers stood at 175.6 lakh, a YoY growth of 9.1%.

•  Stable outlook on the Indian aviation industry – ICRA’s outlook on the Indian aviation industry is Stable, driven by expectations of modest growth in domestic air passenger traffic in FY2026 at 4-6%. The growth could have been higher but for events like cross-border escalations (that had led to flight disruptions and cancellations earlier during the year) and the aircraft accident tragedy in June 2025 that increased travel hesitancy at least in the period immediately post the accident.
• ATF prices in November 2025 were higher by around 0.8% on a sequential basis – The yield movement will remain monitorable due to its linkage with aviation turbine fuel (ATF) prices and the INR to USD exchange rate, both of which have a significant bearing on airlines’ cost structures. The average ATF prices stood at Rs. 95,181/KL in FY2025, lower by 8.0% on a YoY basis. Further, ATF prices from April 1, 2025, to November 1, 2025, have been lower by 6.5% YoY. The average ATF prices increased by 0.8% in November 2025 on a sequential basis and by 4.4% on a YoY basis.