India's Air Travel Market Faces Slowdown
India's domestic air travel, which experienced a sharp rebound after the pandemic, is now showing signs of slowing down. Data from the Directorate General of Civil Aviation (DGCA) indicates that domestic passenger traffic has decreased for three months in a row, through September 2025. This marks the first continuous decline since 2022.
Declining Growth Trends
Following two years of recovery, the country's aviation sector seems to be entering a consolidation phase. Monthly growth rates that once soared in double and triple digits have slowed to single digits, and recently turned negative.
- Growth slowed from 8.5% in April 2025 to 1.9% in May 2025.
- July, August, and September 2025 saw negative growth of -2.9%, -1.4%, and -2.9%, respectively.
Impact on the Industry
This downturn threatens to reverse the post-pandemic surge experienced by Indian airlines. Analysis of DGCA data reveals that while domestic passenger volumes remain above pre-pandemic 2019 levels, the recent declines have brought them close to those seen in 2023.
"After two years of recovery following the Covid slump, India’s aviation sector appears to be entering a phase of consolidation."
"The recent decline risks reversing the post-pandemic boom that Indian airlines witnessed."
Potential Outlook
If the current trend persists, the Indian airline industry may face its first significant setback since the Covid period.
Author's summary: India's domestic aviation growth, after strong pandemic recovery, is slowing down for the first time in years, signaling a challenging phase ahead for airlines.