India’s Air Travel Market Shows Signs of Slowdown
India’s domestic air travel, which surged sharply after the pandemic, is now facing weakening demand. According to data from the Directorate General of Civil Aviation (DGCA), domestic passenger growth has declined for three months in a row as of September 2025—marking the first continuous slowdown since 2022.
Trends in Passenger Traffic Growth
- Growth rates dropped from 8.5% in April 2025 to 1.9% in May.
- Monthly traffic fell into negative growth from July to September: -2.9% in July, -1.4% in August, and -2.9% in September.
- After two years of steady recovery from the Covid slump, the aviation sector seems to be entering a phase of consolidation.
Impact on the Industry
The decline threatens to reverse the post-pandemic surge experienced by Indian airlines. Although domestic passenger volumes remain higher than the 2019 pre-pandemic levels, recent falls have brought them close to those recorded in 2023.
India’s domestic air travel market, once the face of a sharp post-pandemic rebound, is beginning to show signs of fatigue.
Outlook
If this downward trend persists, the Indian airline industry might face its first significant reversal since the pandemic era.
Author’s summary: India’s domestic aviation growth, after strong post-Covid gains, is now declining consecutively, signaling a potential setback for the industry.