India's Air Travel Market Faces New Challenges
India’s domestic air travel once led a sharp post-pandemic recovery but now shows signs of slowing down. According to data from the Directorate General of Civil Aviation (DGCA), domestic passenger traffic has decreased for three consecutive months ending September 2025, marking the first sustained decline since 2022.
Recent Trends in Domestic Passenger Traffic
After two years of steady growth following the Covid-19 slump, the sector appears to be entering a phase of consolidation. Growth rates that previously reached double and triple digits have dropped to single digits and then fallen into negative numbers.
- April 2025: 8.5% growth
- May 2025: 1.9% growth
- July 2025: -2.9% decline
- August 2025: -1.4% decline
- September 2025: -2.9% decline
Implications of the Decline
The recent drop threatens to undo much of the post-pandemic boom experienced by Indian airlines. A closer look at DGCA data reveals that while current passenger numbers remain above pre-pandemic levels of 2019, the downturn has brought volumes nearly back to 2023 figures.
India’s aviation sector appears to be "entering a phase of consolidation" after two years of recovery.
Domestic passenger traffic has "declined for three consecutive months through September 2025," signaling cooling demand.
If this downward trend persists, the Indian airline industry may face its first significant challenge since the Covid period.
Summary: India’s domestic air travel market is experiencing a rare slowdown after strong recovery, with passenger traffic declining for three months, indicating a potential shift towards industry consolidation.