India’s domestic air passenger traffic fell 7.5 pc in Aug: IATA

As per the latest business developments, India's domestic air passenger volume eased 7.5 per cent in August on an annual basis, recording the largest traffic slide among the major domestic markets, according to global airlines' grouping IATA.

In its air passenger market analysis report for August, the International Air Transport Association (IATA) on Wednesday stated industry-wide RPK eased back into contraction, falling 0.8 per cent year-on-year (YoY) after registering a marginal expansion of 0.3 per cent in July.

Topline Passenger Kilometres (RPK) is an indicator of passenger volumes.

"Elevated demand in China, Brazil and Australia contrasted with declines in Japan, the US and India. Despite expansion across several major markets, overall domestic traffic remained slightly below its level a year earlier," IATA stated.

IATA's Senior Vice President Sustainability and Chief Economist Marie Owens Thomsen stated the coming months will reveal whether travellers, whose purchasing power has been reduced by elevated energy prices, are adjusting their travel budgets, and might be discouraged from travelling due to the prevailing geopolitical instability.

"India recorded the largest traffic slide among the major domestic markets. Domestic RPK declined by 7.5 per cent YoY, following a 5.2 per cent decrease in July. Capacity contracted by 1.2 per cent, substantially less than the decline in demand, resulting in a 5.4 percentage point reduction in the PLF to 78.7 per cent," IATA stated.

The grouping, which represents over 370 airlines globally including Indian carriers, stated India's was the lowest PLF and the largest dip in the load factor among the six markets.

PLF refers to the Passenger Load Factor. Asia Pacific airlines recorded a 0.1 per cent year-on-year decrease in demand in August.

"Capacity decreased 0.9 per cent year-on-year and the load factor was 85.6 per cent (+0.7 ppt compared to August 2025). Traffic on routes within Asia declined 2.0 per cent and capacity declined for the fourth month in a row. By contrast, traffic on the Asia-North America corridor grew by 2.5 per cent," IATA stated.

Thomsen stated the recovery trajectory for carriers in the Middle East was interrupted and the region's carriers noted that in August demand was 14.6 per cent softer year-on-year, reversing an improving trend.

"Excluding the Middle East carriers, demand for air travel grew by 0.6 per cent year-on-year in August, half the pace noted in July. With some important exceptions such as domestic China, global connectivity was generally weaker in August," she stated.

She additionally noted that forward schedules for October are showing wary optimism with 2 per cent expansion in available seats.