India's Air Travel Market Faces a Slowdown
India’s domestic aviation sector, once a symbol of rapid post-pandemic growth, is now showing clear signs of fatigue. Recent data indicates a decline in passenger traffic for three straight months through September 2025, marking the first sustained slowdown since 2022.
Signs of Cooling Demand
According to the Directorate General of Civil Aviation (DGCA), domestic air traffic growth slowed from 8.5% in April 2025 to just 1.9% in May. By July, it had entered negative territory and remained there:
- July 2025: -2.9%
- August 2025: -1.4%
- September 2025: -2.9%
This steady decline suggests that the post-covid rebound is losing steam, as demand normalization takes hold after a period of explosive recovery.
Impact on the Airline Industry
The slowdown threatens to reverse gains made since the pandemic. Domestic volumes still exceed pre-covid 2019 levels, but the recent dips have brought them closer to those recorded in 2023. Analysts suggest that India’s airline market may now be entering a consolidation phase.
“The domestic air travel market, once the face of a sharp post-pandemic rebound, is beginning to show signs of fatigue,” notes data from DGCA.
Market Outlook
If the downward trend continues, India’s airline industry could experience its first major setback since the covid slump, challenging carriers that expanded aggressively during the recovery period.
Author’s summary: India’s domestic aviation market is entering a cooling phase after two years of strong growth, with demand softening and traffic declining for three consecutive months.