India's domestic air traffic growth slows to 0.64% in first half of 2026

Domestic airlines in India carried 984.03 lakh passengers during the January-July 2026 period, compared to 977.79 lakh passengers in the same period last year, data showed. The marginal increase of 0.64 per cent represents a significant deceleration in growth rates, reflecting softer travel demand in recent months.

The slowdown in July traffic marked a visible change in momentum for the sector, which had been expanding at healthier rates in previous quarters. The moderation in growth comes as the domestic aviation industry navigates evolving economic conditions and seasonal travel patterns.

Despite the July weakness, cumulative passenger numbers for the first half of the financial year remained in positive territory, suggesting underlying resilience in India's aviation market. However, the subdued growth rate highlights emerging challenges for carriers operating in the competitive domestic segment.

Industry analysts are watching closely to determine whether the July slowdown represents a temporary correction or signals a broader shift in travel demand going forward. Factors including economic sentiment, fuel costs, and airline capacity additions are expected to influence the trajectory of India's domestic aviation sector in the coming months.