NEW DELHI: India’s aviation industry remains resilient despite operational challenges as domestic passenger traffic increased 0.3 per cent in August (year-on-year), a report said on Friday.

Credit rating agency ICRA gave a stable outlook for the sector, driven by expectations of a modest 4 to 6 per cent growth in domestic air passenger traffic in FY2026, the report said.

Analysts indicated that reduced ATF costs and strong yields will help airlines in managing short-term challenges, despite ongoing supply-chain and engine failure issues.

For August 2025, domestic air passenger traffic stood at 131.7 lakh against 131.3 lakh in August 2024, implying a 0.3 per cent YoY increase, the report said. On a sequential basis, domestic air passenger traffic in August 2025 was higher by 4.5 per cen

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