India’s domestic aviation sector began the new financial year on a weaker footing, with passenger traffic declining in April amid softer demand, rising operating costs and network rationalisation by airlines.
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India’s domestic aviation sector began the new financial year on a weaker footing, with passenger traffic declining in April amid softer demand, rising operating costs and network rationalisation by airlines.
According to data released by the Directorate General of Civil Aviation (DGCA), domestic carriers transported more than 1.38 crore passengers in April 2026, down 4.2 per cent from the 1.44 crore passengers recorded in March. Traffic also declined 3.47 per cent compared with April 2025, when airlines carried more than 1.43 crore passengers.
The latest figures underline the pressures facing Indian airlines as higher fuel prices, cost inflation and moderating discretionary travel demand continue to affect the industry.
The slowdown marks a subdued start to FY27 for the domestic aviation sector after passenger growth remained largely flat during the first four months of the calendar year.
According to DGCA data:
Industry observers have linked the slowdown to a combination of elevated airfares, rising fuel costs and softer demand across certain travel segments.
Several carriers have also temporarily adjusted network capacity in response to changing market conditions.
While overall traffic weakened, IndiGo further strengthened its dominance in the domestic market.
DGCA data showed the airline's market share increased to 65 per cent in April, up from 63.3 per cent in March.
By contrast, the market share of the Air India Group declined to 24.7 per cent from 26.2 per cent over the same period.
Other market movements included:
The figures indicate that competitive dynamics remain active despite broader demand challenges across the sector.
The DGCA report also highlighted operational reliability across India's airline industry.
In terms of On-Time Performance (OTP) across ten major airports, IndiGo emerged as the best-performing airline in April.
OTP rankings were:
The performance assessment covered operations at Bengaluru, Delhi, Hyderabad, Mumbai, Chennai, Kolkata, Ahmedabad, Kochi, Guwahati and Lucknow airports.
Despite generally stable operations, flight disruptions continued to affect a significant number of passengers.
DGCA data showed that passenger complaints and service disruptions remained a challenge during April.
Key operational indicators included:
The figures highlight the continuing operational and customer service challenges facing carriers as they balance costs, fleet availability and network performance.
The traffic decline comes at a time when airlines are navigating a complex operating environment marked by higher fuel costs, pressure on yields and uneven travel demand.
Many carriers have adjusted schedules and trimmed select routes in recent months as they seek to manage costs while maintaining profitability.
The combination of rising operational expenses and moderating passenger growth has placed renewed focus on capacity deployment, network optimisation and operational efficiency across the sector.
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