New Delhi, Dec. 30 -- India's domestic air passenger traffic is expected to grow at a slower pace of 0-3 per cent in FY2026, sharply lower than the earlier projection of 4-6 per cent, due to multiple disruptions during the year, according to a report by ICRA.

The rating agency said the downward revision reflects a combination of operational, geopolitical and sentiment-related factors that impacted air travel demand. As per the report, domestic air passenger traffic growth during the first eight months of FY2026 (April-November 2025) stood at 2.2 per cent year-on-year, which was lower than earlier expectations.

It stated, "Domestic air passenger traffic growth to 0-3 per cent in FY2026 against its earlier projection of 4-6 per cent. The ...