India's Air Travel Market Experiences Slowdown
India’s domestic air travel sector, which surged sharply 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 declined for three consecutive months through September 2025. This marks the first prolonged slowdown since 2022.
Trends in Passenger Traffic Growth
After two years of recovery post-Covid, the aviation sector appears to be entering a phase of consolidation. Monthly growth rates, which previously soared into double and triple digits, have now dropped to single digits and recently turned negative.
- Growth slowed from 8.5% in April 2025 to 1.9% in May.
- Passenger traffic contracted in July (-2.9%), August (-1.4%), and September (-2.9%).
Industry Standing Despite Slowdown
Despite the recent dip, the industry remains stronger than pre-pandemic levels. A Mint analysis of DGCA data shows that air passenger volumes in 2025 were comfortably above those in 2019.
The recent flattening "reflects a market stabilizing at a higher base rather than a reversal in demand."
Summary
While the sharp post-pandemic growth in India's domestic air travel is cooling, demand remains significantly higher than before Covid-19, indicating market stabilization.