Local air travel rises by 4.1 % in May 2025; Growth growth in the month: ICRA report

Local air passenger traffic in India increased by 4.1 % on an annual basis in May 2025, reaching an estimated 143.6 passenger travelers, an increase of 138.0 cobs registered in May 2024, according to the latest update from the ICRA classification agency. However, on a serial basis, traffic remained largely flat compared to the April 2025, indicating the presence of a plateau in the monthly momentum.

The sector’s ability has grown by 5.1 % on an annual basis in May, where airlines operate about 98353 exits, an increase of 93,551 in May 2024. The average number of daily departures was at 3,173 per month – an increase of 3,018 daily flights last year but slightly less than April 3,274.

The average number of passengers on the trip came in 146, a marginal decrease from 147 in May 2024, but fixed against April 2025. Performance loading factor (PLF) – a major efficiency scale – recorded by 88.0 %, dipped from 88.9 % in the previous year, but from 86.1 % registered in April.

In the first two months of FY2026 (April – May 2025), the cumulative local traffic was estimated at 286.8 Cham, which represents 6.2 % growth on an annual basis. ICRA expected that local passenger traffic will grow by 7-10 % in the 2016 fiscal year, to reach 175-181 million passengers, after an increase of 7.6 % in the 2015 fiscal year.

Despite the steady demand, ICRA maintains “stable” expectations for the aviation sector, with a warning of the negative risks caused by the high crude oil prices, the registered air field on Iran and Pakistan, and a possible increase in insurance premiums after the last Airlines crashes. The operational challenges, including the foundations related to the engine, the deficiency of the crew, and the cancellation of the flight, also affected the levels of service.

At the forefront of the cost, the prices of turbochargers (ATF) in June 2025 were 13.8 % lower on an annual basis and 2.7 % continued, providing some convenience for tankers. However, pressure on revenue is still a source of concern as airlines seek to maintain stable passenger loading factors amid competitive prices and high operating costs.

ICRA estimates that the industry may report net losses ranging between 20,000 and 30,000 rupees in the fiscal year 2016, due to continued cost pressure, high rental obligations, and interest expenses. However, this will be much better than 23,500 rupees losses and 17,400 rupees seen in the 2012 fiscal year and FY2023, respectively.

The supply chain problems, especially those associated with engine failure and spare parts, have spent, especially with PRATT & Whitney engines-on part of the fleet through the major airlines. Despite the decrease in the number of institutions to May 40 from 133 in March, the airlines continue to face rental rents and lack of operational efficiency due to the use of old or alternative aircraft.

To move forward, the industry profit will depend greatly on maintaining high loading factors, rationalizing prices, and managing the availability of the fleet amid the delay of global delivery. With the stability of passengers, airlines may need a cost control budget with the quality of the service to maintain the recovery path.