India's Domestic Air Travel Market Faces Slowdown
India’s domestic air travel sector, which had rebounded sharply after the pandemic, is now showing signs of slowing down. Data from the Directorate General of Civil Aviation (DGCA) indicates a decline in domestic passenger traffic for three consecutive months through September 2025, marking the first sustained slowdown since 2022.
Trends in Passenger Traffic
Following a strong recovery over two years after the Covid slump, the aviation market appears to be entering a consolidation phase. Monthly growth rates, which previously hit double and triple digits, have dropped to single digits and recently turned negative.
- Growth slowed from 8.5% in April 2025 to 1.9% in May 2025.
- Passenger traffic contracted by 2.9% in July 2025.
- Further declined by 1.4% in August 2025 and 2.9% in September 2025.
Recent Passenger Volume Analysis
A Mint analysis of DGCA data shows that while domestic air passenger volumes remain above pre-pandemic 2019 levels, the recent downturn has brought them close to figures last seen in 2023.
India’s aviation sector appears to be entering a phase of consolidation.
The recent decline risks reversing the post-pandemic boom that Indian airlines witnessed.
Implications for the Industry
If the current trend continues, India’s airline industry could experience its first significant setback since the Covid period, challenging the momentum gained from the post-pandemic recovery.