India's Air Travel Market Faces Slowdown
India's domestic air travel, which surged sharply after the pandemic, is now showing signs of slowing down. The Directorate General of Civil Aviation (DGCA) reports a decline in domestic passenger traffic for three consecutive months up to September 2025, marking the first prolonged slowdown since 2022.
Slowing Growth Trends
After a robust recovery from the Covid-19 slump over two years, the aviation sector is entering a period of consolidation. Monthly growth that exceeded double and triple digits has dropped to single digits and has recently turned negative. DGCA data reveals monthly passenger traffic growth trends:
- April 2025: 8.5%
- May 2025: 1.9%
- July 2025: -2.9%
- August 2025: -1.4%
- September 2025: -2.9%
Market Resilience Above Pre-Pandemic Levels
Despite this slowdown, the industry remains more stable than before the pandemic. Analysis indicates that domestic air passenger volumes in 2025 are still well above 2019 figures.
The recent flattening "reflects a market stabilizing at a higher base rather than a reversal in demand."
Summary
The drop in passenger growth signifies a settling of the market after rapid post-pandemic expansion, suggesting sustained structural demand despite recent softness.
Author's Conclusion
India’s domestic aviation is transitioning from rapid growth to stabilization, maintaining higher travel levels than before Covid-19.