India's Air Travel Market Faces Turbulence
India’s domestic air travel sector, which had surged sharply after the pandemic, is now showing signs of weakening demand. Data from the Directorate General of Civil Aviation (DGCA) indicates that domestic passenger traffic has declined for three straight months through September 2025. This marks the first sustained slowdown since 2022.
Post-Pandemic Growth Eases
Following a strong recovery over two years after the Covid slump, the aviation industry seems to be entering a consolidation phase. Growth rates that previously reached double and triple digits have dropped to single digits, and recently slipped into negative territory.
- 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
Implications of the Slowdown
The downturn threatens to undo the post-pandemic boom experienced by Indian airlines. Although domestic passenger volumes remain above the pre-pandemic 2019 levels, recent declines have brought numbers closer to those seen in 2023.
"The recent decline risks reversing the post-pandemic boom that Indian airlines witnessed."
Looking Ahead
If the current trend persists, India’s airline industry could face its first significant setback since the onset of the Covid pandemic.
Author’s summary: India’s domestic aviation growth is slowing after a strong post-pandemic surge, signaling a possible consolidation phase and risk of reversing recent gains.