India’s home air passenger site visitors rose by 4.1% year-on-year in Might 2025, reaching an estimated 143.6 lakh passengers, up from 138.0 lakh recorded in Might 2024, in response to the newest replace from scores company ICRA. Nonetheless, on a sequential foundation, site visitors remained largely flat in comparison with April 2025, indicating a plateau in month-to-month momentum.
The sector’s capability deployment grew 5.1% YoY in Might, with airways working round 98,353 departures, up from 93,551 in Might 2024. The variety of common each day departures stood at 3,173 for the month—a rise from the three,018 each day flights final 12 months however barely decrease than April’s 3,274.
The common variety of passengers per flight got here in at 146, marginally down from 147 in Might 2024, however regular versus April 2025. The Passenger Load Issue (PLF)—a key effectivity metric—stood at 88.0%, dipping from 88.9% a 12 months earlier, however up from 86.1% recorded in April.
Within the first two months of FY2026 (April–Might 2025), cumulative home site visitors was estimated at 286.8 lakh, marking a 6.2% YoY progress. ICRA has forecasted home passenger site visitors to develop by 7–10% in FY2026, to achieve 175–181 million passengers, following a 7.6% rise in FY2025.
Regardless of regular demand, ICRA maintains a ‘Secure’ outlook for the aviation sector, whereas cautioning in opposition to draw back dangers stemming from elevated crude oil costs, restricted airspace over Iran and Pakistan, and a attainable improve in insurance coverage premiums following the current Air India crash. Operational challenges, together with engine-related groundings, crew shortages, and flight cancellations have additionally impacted service ranges.
On the associated fee entrance, aviation turbine gasoline (ATF) costs in June 2025 had been 13.8% decrease YoY and a couple of.7% down sequentially, offering some aid to carriers. However, strain on yields stays a priority as airways try to maintain Passenger Load Components secure amid aggressive pricing and rising operational prices.
ICRA estimates the business could report internet losses of Rs 20,000–30,000 crore in FY2026, on account of continued price pressures, increased lease liabilities, and curiosity bills. Nonetheless, this could be considerably higher than the losses of Rs 23,500 crore and Rs 17,400 crore seen in FY2022 and FY2023, respectively.
Provide-chain points, notably these linked to engine failures and elements shortages—particularly with Pratt & Whitney engines—have grounded a portion of the fleet throughout main airways. Although the variety of grounded plane has dropped to 40 as of Might from 133 in March, airways proceed to face elevated lease leases and operational inefficiencies on account of the usage of older or substitute plane.
Going ahead, business profitability will rely closely on sustaining excessive load components, rationalising fares, and managing fleet availability amid international supply delays. As passenger demand stabilises, airways could have to steadiness price management with service high quality to keep up their restoration trajectory.
