Indian Aviation Continues To Bear The Brunt Of West Asia Crisis As Domestic Air Passenger Traffic Records Negative Growth For Four Consecutive Months

Mumbai: The persistent geopolitical instability and ongoing airspace disruptions in West Asia are casting a heavy shadow over the Indian aviation sector. With soaring Aviation Turbine Fuel (ATF) costs and cautious consumer spending, domestic air passenger traffic has contracted year on year for four consecutive months.

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September Records Sharpest Passenger Traffic Decline Of 2026 At 6.49%

According to the monthly air passenger traffic data released by the Directorate General of Civil Aviation (DGCA), September recorded the steepest drop in passenger statistics in 2026, with passenger traffic tumbling 6.49% to 1.18 crore passengers compared to 1.26 crore in September 2025. Year-on-year growth also remained negative, down 0.82%, with 12.23 crore passengers in the nine months, compared to 12.33 crore in the same period the previous year.

The industry's performance highlights a sustained downward trend since March – except for nominal growth in May – stemming from the rising operational costs following the West Asia crisis. Domestic airlines carried 0.87% fewer passengers in March than in the same period last year and 3.47% fewer in April.

Passenger Traffic Declines From June To September Despite May Recovery

While May saw a strong pushback with 9.49% more passengers, the recurring tensions in West Asia again pushed the trend into negative. In June, the domestic sector recorded 1.03% fewer passengers, which worsened to 4.80% in July, 6.34% in August and the peak of 6.49% less traffic in September.

Notably, the passenger load factors (PLF) across key carriers remained resilient in September 2026 despite overall demand softness. Akasa Air led the industry with an 88.1% load factor, marginally up from 87.6% in August. IndiGo followed with an 81.1% PLF, while Air India Group recorded 79.9%. Regional and secondary carriers also reported notable load factors, with SpiceJet at 78.8%, Fly91 at 77.6%, Star Air at 73.9%, Alliance Air at 59.0%, and IndiaOne Air at 54.3%.

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Aviation experts linked the downward trend to the growing unaffordability of domestic air travel with rising airfares. They said rising fares stem from rising operational costs. As air turbine fuel (ATF) makes up the largest share of operating costs, the price rise following the West Asia crisis has forced airlines to hike base fares and fuel surcharges.

Notably, the number of international passengers carried by Indian airlines has also failed to reach pre-February levels. In September 2026, Indian carriers transported 25 lakh passengers to overseas destinations, down 13% and 35% from the figures reported in February and January this year, respectively.

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