Mumbai: International air passenger traffic carried by Indian airlines fell once again in September 2026, marking eight consecutive months of sustained year-on-year (YoY) contraction. Official operational statistics showed that Indian airlines transported 25.07 lakh passengers on international routes in September, down 11.23% from the 28.25 lakh passengers carried during the corresponding period last year.
February Marks Beginning Of Slump
The sustained slump underscored a protracted correction phase in overseas flight operations by domestic carriers, following the initial post-holiday peak recorded earlier in the year. Although the year 2026 began on a high note with January posting 33.97 lakh passengers – outperforming January 2025 by over 2 lakh passengers, the volumes decreased by 0.35% in February, when the West Asia crisis unfolded.
The trend shifted dramatically in March, when international departures plummeted by nearly 39% YoY, falling from 18,502 in March 2025 to 11,284 in March 2026. Passenger volume followed suit, crashing to 18.44 lakh in March and a low of 18.24 lakh in April – a massive year-on-year drop of over 39%.
Airlines Gradually Restore Flight Capacity
From May through September 2026, Indian carriers gradually restored capacity – increasing monthly departures from 13,995 in May to 16,586 in September. However, overall operations and passenger volumes have remained consistently suppressed compared to 2025 levels, sealing an 8-month streak of year-on-year decline.
Industry analysts and airline officials attribute this 8-month contraction to a combination of geopolitical, economic and fleet-related constraints. Escalating regional tensions across West Asia disrupted critical flight corridors from March to May. It caused airspace closures and flight reroutings, which have severely hindered short and long-haul connections to Gulf hubs, which account for a sizable portion of international traffic for Indian airlines.
The conflict has also raised aviation turbine fuel (ATF) costs, forcing airlines to raise airfares on short-haul international sectors and curbing outbound leisure demand. The higher cost has also affected ticket prices, with airlines adding fuel surcharges. Notably, foreign airlines have been expanding their seats under existing bilateral quotas, capturing a larger share of point-to-point and long-haul connecting traffic out of Tier-1 Indian metros.
While passenger numbers have gradually edged back up toward the 25-26 lakh range during the third quarter of the current year, Indian carriers will need a robust winter holiday schedule to offset the substantial losses sustained during the spring slump.
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