Synopsis
The domestic air passenger traffic in India saw an 11.3% increase in March, reaching 148.8 lakh, signaling stable growth for the aviation industry. The fiscal year 2025 recorded a YoY growth of 7.8%, with positive projections for the upcoming year.Key Takeaways
- 148.8 lakh domestic air passengers in March 2025.
- 11.3% YoY growth in passenger traffic.
- Stable outlook for the aviation sector in FY26.
- PLF rose to 88.2% in March 2025.
- Average ATF prices down 8% YoY for FY25.
New Delhi, April 24 (NationPress) The estimated domestic air passenger traffic for March reached 148.8 lakh, reflecting a growth of 11.3 percent year-over-year and an increase of 5.9 percent compared to 140.4 lakh in February 2025, according to a report released on Thursday.
For the fiscal year 2025 (April 2024-March 2025), domestic air passenger traffic totaled 1,657.1 lakh, marking a 7.8 percent year-over-year increase and a substantial rise of 17.1 percent compared to the pre-COVID figure of 1,415.6 lakh in FY20, as reported by credit rating agency ICRA.
The forecast for the Indian aviation sector remains stable, anticipated to be supported by moderate growth in domestic air passenger traffic and a relatively steady cost environment throughout FY26, the report noted.
In the first 11 months of FY25, international passenger traffic for Indian airlines reached 309.5 lakh, demonstrating a year-over-year growth of 14.6 percent and exceeding pre-COVID levels of 218.1 lakh by 41.9 percent.
The report indicates that airlines' capacity deployment in March 2025 was 8.5 percent higher than in March 2024 and increased by 10.7 percent compared to February 2025.
This aligns with ICRA's forecast of a 7-10 percent year-over-year growth for FY25. The domestic aviation sector achieved a passenger load factor (PLF) of 88.2 percent in March 2025, up from 86.0 percent in March 2024, and an average of 87.0 percent for FY25, slightly down from 88.0 percent in FY24.
Throughout April 2024-March 2025, average ATF prices declined year-over-year in April, June, September, October, January, and March 2025, resulting in a total reduction of 8 percent year-over-year for FY25.
The report also noted that ATF prices dropped by 6.1 percent sequentially in April 2025 and were 12.9 percent lower on a year-over-year basis.
“Efforts by airlines to implement fare increases in line with rising input costs will be crucial for enhancing their profit margins,” the report concluded.
