India's Air Travel Market Faces Challenges
India’s domestic air travel sector, which surged sharply after the pandemic, is showing signs of slowdown. According to data from the Directorate General of Civil Aviation (DGCA), domestic passenger traffic has fallen for three consecutive months ending in September 2025. This marks the first prolonged decline since 2022.
Traffic Growth Trends
After recovering steadily from the Covid-19 slump over two years, growth rates have weakened noticeably. Earlier monthly increases hitting double and triple digits have dropped to single digits and recently turned negative.
- 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
Impact on the Industry
This dip threatens to undo the post-pandemic surge experienced by Indian airlines. A detailed Mint analysis of DGCA figures shows that while passenger volumes remain above pre-pandemic 2019 levels, the recent downturn has brought them close to 2023 numbers.
India’s aviation sector appears to be entering a phase of consolidation.
If the current trend persists, the industry may face its first significant setback since the pandemic began.
Author's Summary
India’s domestic air travel market, after strong post-Covid growth, is now experiencing a notable slowdown, signaling a potential industry consolidation phase.