Research Report

The overall passenger traffic is expected to grow by 1.8-2.5% in FY2026 to reach 419-422 million, lower than ICRA’s earlier estimate of 430-440 million (5-7% YoY growth), on the back of disruptions caused by FDTL restrictions, cross-border tensions (in Q1 FY2026) and maintenance and supply side constraints of airlines affecting passenger traffic growth. 

Further, the geopolitical tensions surrounding the Iran-US-Israel conflict is likely to have a negative impact on international passenger traffic.

Exhibit: Yearly trends in total passenger traffic* (in million)

Source: AAI, ICRA Research; * includes domestic, international as well as transit passengers at airports across India