Indias Domestic Aviation Demand Strengthens in October 2025

India’s aviation landscape for October 2025 indicates that domestic air passenger traffic, ICRA's projections, and passenger load factor trends reflect underlying resilience in the nation’s travel ecosystem. There is a noticeable rise in overall travel interest, driven mainly by renewed confidence among leisure travellers, improved fleet availability, and seasonal tourism peaks that frequently inspire movement across key states and cities. According to the latest analysis by ICRA, passenger movements across Indian airports have been supported not only by higher flight occupancy but also by sustained recovery in aviation-related operations, which have contributed significantly to travel and tourism in the country.

In October, domestic air passenger traffic in India grew in line with broader improvements across the national aviation network, suggesting the sector has efficiently adapted to operational challenges. Encouraging numbers in capacity deployment, combined with consistently strong interest amongst travellers heading to established and emerging destinations, have helped create a stable foundation for the aviation outlook. This expansion is significant for India’s travel sector, where air connectivity is important in linking tourism hubs and supporting regional economies.

Steady Growth Reflected in India’s Domestic Aviation Activity

The domestic aviation sector in India has been observed moving through a phase of renewed momentum in October 2025, with ICRA estimating that passenger traffic reached 14.28 million during the month. This signified a 4.5% increase over the 13.6 million passengers who travelled in October 2024. The month-on-month growth of 12.9% compared to September 2025 further indicated that the aviation landscape is benefiting from a surge in holiday travel, festival-related movement, and improved connectivity across the country’s major travel corridors.

India’s domestic aviation network, supporting vital tourism flows across states such as Goa, Rajasthan, Himachal Pradesh, Kerala, and Jammu and Kashmir, has anchored the resurgence of intra-country travel. With improving convenience and accessibility, the sector has played a central role in revitalizing local tourism economies that depend heavily on air-linked visitors.

Passenger Load Factors Highlight Sustained Travel Demand

The average passenger load, one of the strongest indicators of aviation demand, stood at 84.7% during October 2025. This marked an improvement over the 82.4% recorded in October 2024. This shift is a clear reflection of strong, consistent consumer appetite for travel within India.

A high PLF has also been advantageous for airlines operating in the country, allowing more efficient seat use and improving operational stability. Tourist-heavy routes, for example, those connecting Delhi to Leh, Mumbai to Kochi and Bengaluru to Port Blair, have contributed to these strengthened load factors. Seasonal demand for hill stations and beach destinations has a big role in shaping this positive trajectory.

Return of Grounded Aircraft Helps Ease Operational Pressure

In October, domestic capacity deployment rose 1.7% year on year, with a 10.8% consecutive increase. These improvements were due to the return of grounded aircraft to service and by airlines' improved fleet utilization. India’s aviation sector has been experiencing periodic constraints due to supply chain delays, upkeep requirements and global market uncertainties. The reintroduction of grounded aircraft has therefore been instrumental in stabilizing seat availability across the country.

This enhanced capacity has supported tourism-dependent regions where flight frequencies are vital for maintaining tourist arrivals. Improved seat supply has also helped travellers visiting pilgrimage sites, wildlife reserves, luxury resort destinations and remote hill regions in India that depend heavily on-air connectivity.

Performance Overview for the First Seven Months of FY26

From April to October 2025, India’s domestic air passenger traffic is projected at 94.45 million, a modest year-on-year increase of 1.6 per cent. Though this increase has been measured against the more robust recovery phase witnessed in FY25, it has nevertheless indicated stability in the sector among various global and domestic challenges.

In the corresponding seven months of FY25, domestic air passenger traffic was about 1,653.8 lakh, which reflected a stronger 7.6% year-on-year expansion. This earlier growth aligned with ICRA’s projections of 7-10% for FY25. Broader financial sentiment, temporary disruptions and evolving passenger behaviour patterns in business and leisure travel have influenced the shift from high to moderate growth in FY26.

External Factors Shaping the Aviation Environment

While travel demand remains healthy, ICRA has highlighted numerous factors that could shape growth consequences in the near future. Cross-border tensions have introduced doubts into aviation routes, while ATC disruptions have added operational intricacy to flight scheduling. Also, a mild softening in business travel sentiment has been observed due to shifting corporate priorities, remote-work dynamics, and ongoing global market conditions.

Despite these influences, tourism-driven demand continues to anchor the domestic travel ecosystem. Enthusiasm amongst holidaymakers has remained high, particularly as India offers diverse travel landscapes that attract both repeat and first-time flyers. Augmented interest in short-haul trips, experiential tourism and flexible weekend travel has helped preserve consistent passenger movement across domestic airports.

Stability Expected for FY26 Aviation Outlook

ICRA has placed a Stable outlook on India’s aviation industry for FY26. Domestic traffic growth is projected at 4 to 6%, while international traffic is projected to rise by 13 to 15%. These projections confirm that India’s aviation system is well-positioned for gradual, sustained growth, supported by strong fundamentals such as airport upgrades, enhanced airline efficiency, and expanding networks serving key tourism circuits.

International travel demand linked to routes connecting India to Southeast Asia, the Middle East and Europe has also been contributing to a positive aviation environment. As new flights and restored routes, such as Air India’s planned resumption of Delhi–Shanghai operations, become available, India’s position in the global travel network is expected to strengthen further.

Source: Travel and Tour World