Equirus Securities says international traffic is recovering as airlines restore overseas operations, while domestic travel continues to drive growth across India’s aviation market.
India’s aviation sector is regaining momentum as airlines restore international routes disrupted by recent geopolitical tensions in the Middle East. Equirus Securities says easing airspace restrictions have allowed Indian carriers to resume more overseas operations, driving a strong recovery in international passenger traffic during May. At the same time, domestic aviation continued to post steady growth, highlighting the resilience of India’s air travel market. The brokerage also says lower aviation turbine fuel (ATF) prices supported airline operations during the month. However, the depreciation of the Indian rupee continued to increase cost pressures for carriers.
Image Courtesy: Unsplash
International traffic returns to growth
Equirus Securities reports that Indian airlines carried approximately 2.3 million international passengers in May. Passenger traffic increased 24 per cent compared with April as more overseas routes returned to service. Airlines also operated around 14,200 international departures, up 22 per cent month-on-month. Meanwhile, international capacity increased 10 per cent to around 10.5 billion available seat km (ASKs). However, the recovery is still underway. Equirus says international passenger traffic remained 24 per cent below the same period last year. Flight departures also declined 24 per cent year-on-year, while capacity continued to trail 2025 levels. Even so, passenger demand outpaced capacity growth. As a result, the international passenger load factor improved to 76.6 per cent during May.
Domestic aviation continues to lead
While international traffic recovered, domestic aviation remained the industry’s strongest performer. Equirus Securities says Indian airlines carried approximately 15.4 million domestic passengers in May. That represents a 10 per cent increase year-on-year and an 11 per cent rise compared with April. Domestic airlines also operated around 103,500 departures, up 5 per cent from the same month last year. Passenger demand continued to exceed capacity growth, pushing the domestic passenger load factor to 85.9 per cent. The figures highlight the continued strength of India’s domestic aviation market despite broader global challenges.
IndiGo strengthens its lead
Equirus Securities says IndiGo continued to consolidate its position in both domestic and international markets. The airline retained a 64.8 per cent share of the domestic market during May. Air India Group increased its domestic market share to 25.7 per cent, while Akasa Air expanded its share to 5.8 per cent. SpiceJet accounted for 2.5 per cent of domestic passenger traffic. Internationally, IndiGo strengthened its leadership even further. The airline increased its international passenger market share to 52.5 per cent, gaining more than eight percentage points compared with the previous year. Meanwhile, Air India Group’s international share stood at 42.5 per cent, while Akasa Air increased its share to around 3.1 per cent.
The aviation industry continues its recovery
According to Equirus Securities, Indian airlines carried approximately 17.7 million passengers across domestic and international networks during May, 2026. Total passenger traffic increased 4 per cent year on year and 13 per cent compared with April this year. Airlines operated around 117,700 departures during the month. While departures remained broadly unchanged from last year, they increased 8 per cent month-on-month. Overall capacity remained 5 per cent below last year’s levels. However, stronger passenger demand pushed the combined passenger load factor to 82.5 per cent. Equirus Securities believes domestic aviation continues to provide the foundation for India’s aviation growth. At the same time, the brokerage expects international operations to strengthen further as airlines restore overseas connectivity and operating conditions continue to improve.
Key takeaways
- Equirus Securities says international passenger traffic rose 24 per cent month on month in May, 2026.
- Domestic airlines carried approximately 15.4 million passengers.
- IndiGo increased its international market share to 52.5 per cent.
- Air India Group held a 42.5 per cent share of the international market.
- Indian airlines carried approximately 17.7 million passengers during May, 2026.
