India's air travel market is experiencing turbulence
India’s domestic air travel market, once a symbol of a rapid post-pandemic recovery, is now showing clear signs of fatigue. Data from the Directorate General of Civil Aviation (DGCA) indicates that domestic passenger traffic has fallen for three consecutive months through September 2025, marking the first prolonged slowdown since 2022.
After two strong years of recovery from the Covid-induced slump, the country’s aviation industry appears to be entering a phase of stabilization. Growth rates that previously reached double and even triple digits have now eased to single digits and, in recent months, turned negative.
Recent traffic trends
- April 2025: passenger traffic growth at 8.5%
- May 2025: slowed to 1.9%
- July 2025: declined by 2.9%
- August 2025: down by 1.4%
- September 2025: again dropped by 2.9%
Market perspective
Despite this slowdown, the domestic aviation market stands on stronger ground than before the pandemic. A Mint analysis of DGCA data shows that total passenger volumes in 2025 remain well above 2019 levels. This suggests that while momentum has softened, India’s travel demand is still structurally higher than it was prior to the Covid crisis.
"The recent flattening reflects a market stabilizing at a higher base rather than a reversal in demand."
Author’s Summary
The decline in India’s domestic air travel signals a market adjustment after the post-pandemic surge, settling into a more sustainable growth rhythm above pre-Covid levels.