Domestic Air Travel crosses 1.38 crore in June
India’s domestic air passenger traffic crossed 1.38 crore in June 2025. This marked a 5.1% rise compared to the same month last year. According to a report by rating agency ICRA, demand has remained steady. However, the industry continues to face mounting financial and operational pressures.
Passenger traffic for June 2025 was estimated at 138.7 lakh. This was higher than 132.1 lakh recorded in June 2024. At the same time, passenger numbers dipped by 1.3% compared to May 2025. Airlines deployed 4.9% more capacity over June last year. But it was 2.3% lower than what was available in May this year.
ICRA has projected a net loss of ₹2,000 to ₹3,000 crore for the aviation sector in FY2026. This is largely due to rising aviation turbine fuel (ATF) prices and ongoing geopolitical tensions. The report highlighted several operational challenges. These include continuing supply chain disruptions and engine availability issues with Pratt & Whitney.
Geopolitical tensions have also added to the strain. Rising crude oil prices, closure of airspace over Iran and Pakistan, and a potential rise in insurance premiums are some of the key concerns.
ICRA noted that recent aviation incidents have affected sentiment. This could lead to hesitation among some passengers in the coming months.
Despite these headwinds, domestic air travel demand has held up so far. The overall pricing environment has also remained steady.
In the first quarter of FY2025-26, over 4.22 crore passengers flew on domestic routes. This reflects consistent demand despite operational challenges and higher costs.
ICRA warned that the sector’s financial health will need close monitoring. Emerging risks could weigh heavily on profitability and operational efficiency in the quarters ahead.
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