Indian Airlines See Significant Growth in October 2025 with Over One Hundred Forty Two Lakh Passengers but Face Fuel Price Hikes and Global Disruptions That Could Affect Future Growth

Published on November 18, 2025

Indian airlines experienced a significant surge in passenger traffic in October 2025, with over 142 lakh passengers flying domestically, marking a notable year-on-year increase. This growth reflects the robust recovery of the aviation sector as demand for air travel continues to rise, fueled by expanded routes and a rebound in business and leisure travel. However, despite these positive figures, the industry faces challenges, including rising fuel prices, which account for a large portion of operating costs, and global disruptions that could potentially hinder further growth. These factors pose risks to the sector’s profitability and future expansion.

The Indian aviation sector has shown remarkable resilience in the face of numerous challenges, posting impressive growth figures in October 2025. With domestic air traffic surging to 142.8 lakh passengers, the industry has proven its capacity to adapt and thrive, despite rising operational costs and global disruptions. As the sector continues to recover from previous setbacks, including a devastating aircraft tragedy earlier in the year, the positive growth trends are a testament to the increasing demand for air travel in India.

Strong Growth in Domestic Passenger Traffic

October 2025 marked a notable milestone for India’s aviation industry, with a 4.5 percent year-on-year increase in domestic passenger traffic. This increase brought the total number of domestic passengers to 142.8 lakh, demonstrating the continued rise in demand for air travel across the country. When compared to September 2025, there was a significant sequential increase of 12.9 percent, reflecting the seasonal uptick in travel typically associated with the festive period.

The surge in passenger numbers can be attributed to several factors. Firstly, the ongoing expansion of the airline fleet and increased flight frequency across popular domestic routes have made air travel more accessible to a larger segment of the population. Additionally, the rising number of business and leisure travelers, who have resumed their travel plans post-pandemic, has played a crucial role in the increase in demand.

Operational Efficiency and Industry Resilience

One of the key indicators of the industry’s success in October was the improvement in operational efficiency. The industry’s Passenger Load Factor (PLF) reached an estimated 84.7 percent, higher than both the 82.4 percent recorded in October 2024 and the 81.4 percent in September 2025. This indicates a more efficient use of available capacity, with airlines better managing their flights to accommodate the growing number of travelers.

As more passengers take to the skies, airlines have worked to ensure that they maintain high levels of efficiency in their operations. Increased capacity utilization, along with the ongoing implementation of better scheduling and optimized flight routes, has allowed airlines to provide more services to an expanding passenger base.

Challenges to Future Growth

Despite the optimistic figures for October, the Indian aviation industry faces several challenges that could temper its growth prospects in the short term. A significant concern is the rising cost of Aviation Turbine Fuel (ATF). With fuel accounting for 30 to 40 percent of an airline’s operating costs, the recent rise in ATF prices is putting a strain on airline cost structures. In November, ATF prices were up by 4.4 percent compared to the previous year, and they rose by 0.8 percent from October 2025. These price increases are likely to affect airlines’ profitability and could lead to higher ticket prices, potentially affecting passenger demand.

Additionally, the global travel landscape continues to be influenced by various external factors, including political tensions, economic instability, and ongoing disruptions in international aviation operations. For instance, the recent Air Traffic Control (ATC) disruptions have led to delays and cancellations at major airports, creating frustration among travelers. Although the aviation sector has shown resilience in bouncing back from such setbacks, these external factors remain unpredictable and could continue to pose challenges.

Furthermore, while air traffic has experienced significant growth on the domestic front, international air travel has been relatively slower to recover. The global travel environment has been impacted by a variety of factors, including visa restrictions, fluctuating demand, and a general hesitancy to travel due to concerns over safety and security. Although the Indian government has made efforts to expand international routes and improve air connectivity, the pace of recovery on the international front is still lagging behind domestic growth.

Prospects for the Future

Despite these challenges, there is reason for optimism in the Indian aviation industry’s future. ICRA, a leading credit rating agency, has maintained a “Stable” outlook for the sector, projecting a 4 to 6 percent growth in domestic passenger traffic in the fiscal year 2026. This follows a strong 7.6 percent growth in FY 2025, when total passenger volumes reached 1,653.8 lakh. The outlook is based on the expectation of continued growth in travel demand, supported by the expansion of air travel infrastructure, increasing passenger preferences for air travel, and the ongoing recovery of the tourism sector.

The expansion of international routes and increased aircraft availability are expected to drive growth in international passenger traffic as well. Indian carriers have been actively working to increase their presence in key international markets, with new routes being introduced to popular destinations in the Middle East, Southeast Asia, and Europe. As the global travel market continues to recover, Indian airlines are likely to see a boost in international passenger volumes, which is expected to grow by 13 to 15 percent in FY 2026, according to ICRA’s projections.

The Indian government has also been taking steps to support the growth of the aviation sector by investing in airport infrastructure. Several new airports are either under construction or expansion, including Navi Mumbai International Airport, which is set to begin operations in December 2025. These developments will increase capacity and reduce congestion at major hubs like Delhi, Mumbai, and Bangalore, creating more opportunities for growth in both domestic and international travel.

New Guidelines to Enhance Passenger Convenience

In a bid to improve the passenger experience, the Directorate General of Civil Aviation (DGCA) has proposed new guidelines aimed at enhancing convenience for travelers. One of the key changes is the introduction of a 48-hour window for ticket cancellations or amendments without penalties, applicable for domestic flights departing more than five days later and international flights departing more than 15 days later. This change will provide greater flexibility for passengers, making it easier for them to adjust their travel plans without incurring additional costs.

Furthermore, the DGCA has mandated that refunds for canceled or amended flights must be processed within 21 working days. This will ensure a faster resolution of passenger complaints and improve overall satisfaction, particularly in cases of flight cancellations or delays.

The Indian aviation industry has demonstrated impressive growth, particularly in the domestic sector, with passenger traffic soaring in October 2025. However, the sector faces several challenges, including rising fuel costs, global disruptions, and the need for continued investment in infrastructure. Despite these hurdles, the future of the Indian aviation industry looks promising, with strong projections for continued growth in the coming years.

Indian airlines saw significant growth in October 2025, with over 142 lakh passengers, driven by increased demand and expanded capacity. However, rising fuel prices and global disruptions could pose challenges to sustaining this growth.

With increasing travel demand, improved operational efficiency, and ongoing efforts to enhance passenger experience, Indian airlines are well-positioned to continue their upward trajectory. As the sector navigates its challenges, the government’s focus on expanding air travel infrastructure and streamlining operations is expected to play a crucial role in supporting long-term growth. The Indian aviation industry’s resilience, combined with its ability to adapt to changing market conditions, suggests that the best may still be ahead for the sector in the coming years.