Geopolitical flare-ups, AI crash, tariff shocks to dampen India’s air travel demand in FY26, ICRA says

Wait 5 sec.

India's air travel demand is projected to see modest growth of 4-6% in FY26 due to external shocks like geopolitical escalations and trade headwinds. Despite this, international passenger traffic for Indian carriers is expected to surge by 13-15%, driven by stronger overseas route momentum.