India's Domestic Air Passenger Traffic Hits 1.32 Crore In Sept, Marking 8.1% YoY Growth

In the first five months of FY25, international passenger traffic for Indian carriers reached 13.59 mn, up 15.7 per cent year-on-year and surpassing pre-COVID figures of 9.22 million by 48.7 per cent

Domestic air passenger traffic reached approximately 13.23 million in September, reflecting a 0.8 per cent increase from 13.13 million in August, according to data from the credit rating agency ICRA released on Tuesday. Year-on-year, domestic passenger traffic grew by 8.1 per cent compared to 12.25 million in September of the previous year, as per the report.

For the first half of the current fiscal year (FY25), domestic air passenger traffic accounted for 79.55 million, marking a year-on-year increase of 5.6 per cent and exceeding pre-COVID levels of 70.44 million from H1 FY2020 by 12.9 per cent.

In the first five months of FY25, international passenger traffic for Indian carriers reached 13.59 million, up 15.7 per cent year-on-year and surpassing pre-COVID figures of 9.22 million by 48.7 per cent. 

Looking ahead, international passenger traffic for Indian carriers is projected to grow by 15-20 per cent in FY25. “The outlook for the Indian aviation industry remains stable, driven by expectations of moderate growth in domestic air passenger traffic and a relatively stable cost environment in FY25,” said the report.

Furthermore, the industry has experienced enhanced pricing power, evident in the increased yields surpassing pre-COVID levels. This improvement has resulted in the broader revenue per available seat kilometre (RASK) minus cost per available seat kilometre (CASK) spread for airlines.

While the momentum in air passenger traffic observed in FY24 is expected to moderate slightly to a growth rate of 7-10 per cent in FY25—down from 13 per cent in FY24—this change is attributed to the high baseline set in FY24 and reduced passenger numbers in Q1 FY2025, which were affected by severe heat waves and other weather-related disruptions.

In September, airlines increased their capacity deployment by 7.3 per cent compared to the previous year, although this figure represents a 1.7 per cent decline compared to August 2024.

“It is estimated that the domestic aviation industry operated at a passenger load factor (PLF) of 86.2 per cent in September, against 85.6 per cent in September 2023,” the report noted.