India's Domestic Air Travel Soars 10.2% in April; FY25 Traffic Hits Record High

India’s domestic aviation sector continued its upward trajectory in April 2025, with passenger traffic registering a robust 10.2% year-on-year (YoY) increase, according to a report released by credit rating agency ICRA. An estimated 145.5 lakh passengers took to the skies in April, up from 132.0 lakh in the same month last year, highlighting sustained recovery and demand in the sector.

While the year-on-year growth was significant, the month-on-month comparison reflected a plateau, indicating a temporary lull following the peak travel season. Capacity deployment by airlines in April 2025 rose by 6.9% over April 2024, but dipped by 4.2% from March 2025, signaling a marginal pullback in available seat capacity.

For the full financial year 2024–25 (April 2024 to March 2025), domestic air passenger traffic reached approximately 1,653.8 lakh, reflecting a 7.6% growth over FY24 and an impressive 16.8% surge over pre-COVID levels of FY20, which had logged 1,415.6 lakh passengers.

International travel demand also continued to strengthen, with Indian carriers ferrying 338.6 lakh passengers overseas in FY25—marking a YoY growth of 14.1%. This figure is 49% higher than the pre-pandemic level of 227.3 lakh, underscoring the strong rebound in global air travel.

ICRA maintained a "stable" outlook for the Indian aviation industry, supported by expectations of moderate domestic traffic growth and a relatively steady cost environment in FY26. The sector is also expected to retain pricing power and stable yields, as witnessed through FY25.

Despite global headwinds such as fuel price volatility and geopolitical uncertainties, ICRA projects India’s domestic air traffic to grow at a healthy rate of 7–10% in FY26, buoyed by strong passenger demand and improving operational efficiencies.

India’s aviation industry, once grounded by the pandemic, is now firmly in ascent—powered by rising middle-class mobility, growing tourism, and sustained government focus on regional air connectivity.