New Delhi, Nov. 18 -- Rating agency ICRA has affirmed "stable" outlook on Indian civil aviation industry, with expectations that will witness modest 4-6 per cent growth in domestic air passenger traffic in the current financial year 2025-26.

For April-October 2025, domestic air passenger traffic remained at 944.5 lakh, reflecting a year-on-year growth of 1.6 per cent, ICRA said.

The growth in the Indian aviation industry this fiscal could have been higher but for events like cross-border escalations (that had led to flight disruptions and cancellations earlier during the year) and the unfortunate AI171 tragedy in June 2025 that increased travel hesitancy, at least in the period immediately post the accident.

These factors, coupled with...