India's Domestic Air Travel Market Shows Signs of Slowdown
India's domestic air travel, which surged sharply after the pandemic, is now facing a decline in demand. The Directorate General of Civil Aviation (DGCA) data indicates a drop in passenger traffic for three straight months through September 2025, marking the first prolonged slowdown since 2022.
Declining Growth Rates
Following two years of steady recovery from the Covid-19 slump, the aviation sector seems to be moving into a consolidation phase. Growth rates that were previously in the double and triple digits have dropped to single digits and recently entered negative territory.
- April 2025: growth at 8.5%
- May 2025: growth slows to 1.9%
- July 2025: decline of -2.9%
- August 2025: decline of -1.4%
- September 2025: decline of -2.9%
Impact on the Aviation Industry
This downturn might erase the gains Indian airlines made during the post-pandemic recovery. Although passenger volumes remain higher than the pre-pandemic levels of 2019, recent declines have brought volumes back 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.
If the current trend persists, the aviation industry in India could face its first significant setback since the Covid-19 era.
Author’s Summary
The Indian domestic air travel market, after a strong post-pandemic surge, is now experiencing a sustained decline, posing challenges for the aviation sector’s continued growth.