Indian Carriers' Overseas Operations Rebound In August, Though Pre-Crisis Levels Remain Elusive
· Free Press Journal
Mumbai: International air traffic operated by Indian carriers continued its upward trajectory in August 2026, driven by sustained recovery following a severe disruption in West Asian airspace earlier this year. However, the airlines have not been able to match the numbers recorded before the geopolitical crisis.
DGCA records 26.22 lakh international passengers
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According to the latest data released by the Directorate General of Civil Aviation (DGCA), domestic airlines carried 26.22 lakh international passengers across over 16,636 departures in August. The performance reflected a steady month-on-month improvement as airlines recalibrated route networks, adjusted flight paths and reallocated capacity along safer corridors.
Passenger numbers rise for fifth consecutive month
The August operational metrics represented a 2.46% sequential increase in passenger volume compared to July, when Indian airlines transported 25.59 lakh passengers across 15,949 departures. However, despite five consecutive months of month-on-month volume gains, overall traffic remains below pre-crisis baselines.
Statistically, the August traffic remains 8% lower than the 28.52 lakh passengers recorded in February, just before geopolitical escalations forced widespread airspace restrictions. When compared to January’s peak of 33.97 lakh passengers, the number of passengers flown in August lagged by nearly 23%. Moreover, August traffic recorded a 12% year-on-year contraction compared to the corresponding period last year.
The international slump began in late February following sharp geopolitical escalations across the Middle East and West Asia. The conflict closed critical air corridors, forcing carriers to bypass restricted airspaces. Longer detours around the West Asian funnel spiked fuel burn and extended block hours, disproportionately affecting Indian operators connecting North India to West Asia, Europe and North America.
West Asia crisis disrupted global flight routes
The crisis peaked between March and April when the passenger volumes dropped to 18.44 lakh and 18.24 lakh, respectively. The second quarter of 2026 saw cumulative international passengers carried by all airlines drop to 1.72 crore, compared to 1.89 crore in the second quarter of 2025. Foreign airlines capitalised on the routing constraints of Indian carriers, boosting their passenger numbers to 1.07 crore and pushing the market share of Indian carriers down to 37.3% during the quarter.
Panvel’s Two Dialysis Centres Remain Incomplete For Nearly A Year, PMC Promises Operation Within Three MonthsBy May and June, Indian carriers restructured network schedules and deployed long-haul capacity via alternative southern and eastern flight paths. Upward passenger growth resumed, supported by resilient outbound summer travel and aggressive seat capacity additions by major operators like IndiGo and the Air India group.
Industry analysts noted that while passenger demand for overseas destinations remains structurally robust, higher operational expenses – stemming from extended detour routes, elevated jet fuel costs, and route slot constraints – continue to pressure airline margins.
Earlier this month, credit rating agency ICRA projected a modest 1% to 3% growth in overall air passenger traffic at Indian airports for FY2026–27, bringing total annual throughput to between 424 million and 432 million passengers.
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