ICRA has reaffirmed a stable outlook for the Indian aviation sector and projected domestic air passenger growth of around 4–6% in FY26, even as the industry continues to face several operational and external pressures.

The rating agency said that despite global geopolitical uncertainty, elevated fuel prices and recurring operational disruptions, passenger demand has remained resilient. Domestic air travel had already grown by 7.6% in FY2025, rising to 165.38 million travellers as airlines expanded capacity across major routes.

According to ICRA’s latest estimates, Indian carriers flew 142.8 lakh domestic passengers in October 2025, representing a 4.5% increase year-on-year and a 12.9% rise over September. Domestic departures in October were expected to reach 99,816 flights, marking a 10.

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