Hit by the West Asia crisis and a sharp surge in aviation turbine fuel (ATF) prices, international passenger traffic of Indian carriers came under severe pressure in April 2026 at around 1.8 million passengers, a steep decline of 39% year-on-year and 1% month-on-month.
Further, Revenue Passenger Kilometres (RPKs) declined around 33% year-on-year to 7.2 billion in April 2026, while flight departures were down around 37% year-on-year despite a marginal sequential recovery, according to the latest Aviation Tracker report by Equirus Securities.
The brokerage stated that geopolitical tensions and disruptions arising from the ongoing West Asia crisis continued to weigh on the recovery of India's aviation sector, impacting traffic, capacity deployment and overall industry profitability. It added that higher fuel costs and INR weakness will continue to weigh on the sector.
Brent crude stood at around $92 per barrel, up 44% year-on-year, while Singapore jet fuel stood at around $128 per barrel, up 65% year-on-year. Domestic ATF prices stood at around Rs 105.6 thousand per kilolitre, up 18% year-on-year and 9% month-on-month. INR depreciation remained significant at around 95 against the US dollar, up 11% year-on-year, increasing dollar-linked costs such as aircraft leases and maintenance expenses.
The report noted that capacity rationalisation persisted, with Available Seat Kilometres (ASKs) down around 28% year-on-year. However, demand weakness outpaced capacity cuts, leading to a sharp decline in passenger load factor (PLF) to around 75.5%, down 617 basis points year-on-year and 735 basis points month-on-month.
On international routes, IndiGo's passenger market share increased to around 47.5%, up 336 basis points year-on-year and 365 basis points month-on-month, while Air India Group's share moderated to around 46.6%, down 420 basis points year-on-year and 469 basis points month-on-month.
The crisis in West Asia that began on February 28 triggered widespread flight cancellations across the region. Frequent airspace closures have since forced Indian carriers to operate longer detours for a large share of their international flights. With ATF prices at record highs, Indian airlines have decided to cut international operations for the next couple of months. Last month, Air India announced temporarily reducing its international flight capacity by approximately 27%, cutting around 145 weekly flights between June and August.
On the domestic front, passenger traffic declined to around 13.9 million passengers, down 3% year-on-year and 4% month-on-month. Capacity additions continued, with ASKs increasing around 3% year-on-year, resulting in lower utilisation. Domestic passenger load factor moderated sharply to around 82%, reflecting subdued demand conditions and pressure on yields.