India's aviation recovery gathers speed as international travellers return

India's aviation sector regained momentum in May, with international passenger traffic recovering as geopolitical tensions in West Asia eased and airlines gradually restored operations. At the same time, domestic travel remained resilient, reflecting sustained demand despite currency-related cost pressures.

According to a report by Equirus Securities, the easing regional situation helped airlines normalise international schedules, while softer aviation fuel prices provided some relief to operating costs. However, the continued weakness of the Indian rupee remained a challenge for expenses linked to aircraft leasing, maintenance and other dollar-denominated obligations.

International travel rebounds as operations normalise

The report showed a sequential improvement across key international aviation metrics during May.

Key highlights included:

• International passenger traffic reached around 2.3 million, up 24 per cent month on month.
• Revenue Passenger Kilometres (RPKs) increased to around 8 billion, rising 12 per cent sequentially.
• Flight departures climbed to about 14,200, marking a 22 per cent monthly increase.
• Available Seat Kilometres (ASKs) rose 10 per cent month on month to around 10.5 billion.
• Passenger Load Factor (PLF) improved to 76.6 per cent, indicating passenger demand recovered faster than capacity.

The report said the figures point to a gradual normalisation of international flight operations after recent disruptions linked to geopolitical developments.

Fuel costs ease but currency pressure remains

Airlines also benefited from lower fuel prices during the month.

According to Equirus Securities:

• Brent crude oil averaged around US$72.9 per barrel.
• The benchmark remained 8 per cent higher year on year, but declined 21 per cent month on month.

Lower fuel prices offered relief for one of the industry's largest operating expenses.

However, the report noted the Indian rupee remained weak at around 94.7 against the US dollar, approximately 10 per cent weaker year on year. The weaker currency continued to increase the cost of aircraft leases, maintenance contracts and other expenses denominated in US dollars.

Domestic aviation maintains strong momentum

Domestic aviation continued to perform strongly alongside the recovery in international travel.

The report highlighted the following trends:

• Domestic passenger traffic reached around 15.4 million, increasing 10 per cent year on year and 11 per cent month on month.
• Revenue Passenger Kilometres rose to around 15.3 billion, recording 11 per cent growth on both an annual and sequential basis.
• Available Seat Kilometres increased to around 17.8 billion, up 8 per cent year on year and 6 per cent month on month.
• Flight departures climbed to about 103,500, representing 5 per cent annual growth and 6 per cent sequential growth.

The data suggests airlines continued adding capacity to meet healthy passenger demand across India's domestic network.