Air Traffic Grows 8.4% in Nov; ICRA Slashes FY26 Growth Forecast Amid Rising Losses

• Domestic air traffic rose 8.4% year-on-year in November 2025 to 154.5 lakh passengers, with a 10.1% sequential increase.
• ICRA revised its FY2026 domestic air passenger traffic growth forecast to 0-3% from 4-6%, citing slower growth, operational disruptions, and external headwinds.
• Factors for downgrade include cross-border escalations, a June 2025 aircraft accident, US tariff pressures, and IndiGo flight cancellations.
• International passenger traffic growth forecast for FY2026 also cut by ICRA to 7-9% from 13-15%.
• Elevated ATF prices and other cost pressures are projected to lead to a net loss of ₹170–180 billion for the Indian aviation industry in FY2026, significantly higher than earlier estimates.

Why It Matters: Despite November growth, ICRA slashes FY26 aviation forecast due to headwinds and rising losses.