India's Air Travel Market Shows Signs of Cooling
India’s domestic air travel, which saw a sharp rebound after the pandemic, is now experiencing a slowdown. Data from the Directorate General of Civil Aviation (DGCA) indicates a decline in domestic passenger traffic for three consecutive months ending in September 2025, marking the first sustained dip since 2022.
Slowing Growth After Strong Recovery
Following two years of recovery after the Covid slump, the aviation sector in India seems to be entering a consolidation phase. Growth rates that were once in double and triple digits have dropped to single digits, and more recently, traffic has contracted.
Monthly Passenger Traffic Trends
- Growth slowed from 8.5% in April 2025 to 1.9% in May.
- Traffic declined in July (-2.9%), August (-1.4%), and September (-2.9%).
Industry Remains Stronger than Pre-Pandemic
Despite recent declines, the sector is still more robust than before the pandemic. A Mint analysis of DGCA data confirms that air passenger volumes in 2025 remain comfortably above 2019 levels.
"While momentum has softened, travel demand remains structurally higher than pre-covid levels."
This suggests the market is stabilizing at a higher baseline rather than experiencing a reversal in demand.
Author's Summary
India’s domestic aviation sector is cooling after rapid growth but continues to maintain passenger volumes above pre-pandemic levels, indicating a phase of market stabilization.