New Delhi, April 24 -- Indian aviation industry's outlook for 2025-26 remains stable, driven by expectations of moderate growth in domestic air passenger traffic and a relatively stable cost environment, according to rating agency ICRA.

The domestic air passenger traffic is estimated to grow at 7-10 per cent in 2025-26.

However, the yields for airline operators are likely to be under pressure, as airlines strive to maintain adequate passenger load factor (PLF). International passenger traffic for Indian carriers is expected to grow by 15-20 per cent in 2025-26.

"The movement in the yields will remain monitorable, amid elevated aviation turbine fuel (ATF) prices and depreciation of the INR vis-a-vis the USD over pre-Covid levels, both o...