Indian Airlines Witness Rise in International Traffic in June Despite Higher Fuel Costs: Report

New Delhi, August 3, 2026 (Yes Punjab News)

Indian airlines recorded an improvement in international passenger traffic in June despite facing pressure from rising aviation fuel prices and a weaker rupee, according to a report by financial services firm Equirus.

The report said domestic aviation demand remained resilient, with airlines maintaining healthy passenger load factors even as traffic moderated after the peak summer travel season. The sector continued to benefit from steady demand and controlled capacity deployment.

Domestic passenger traffic stood at around 13.5 million in June 2026, registering a 1 per cent year-on-year decline and a 12 per cent month-on-month fall. Revenue Passenger Kilometres (RPKs) remained largely unchanged at 13.3 billion, while Available Seat Kilometres (ASKs) declined 2 per cent year-on-year as airlines adjusted capacity.

Passenger load factor remained strong at 85.7 per cent, improving by 118 basis points compared with the previous year, indicating efficient utilisation of aircraft despite the seasonal slowdown.

International traffic showed signs of recovery, with foreign-bound passengers carried by Indian airlines rising to nearly 2.4 million in June, up 4 per cent from May. Flight departures increased by 6 per cent month-on-month, while capacity remained broadly stable, suggesting a gradual revival of international operations after earlier disruptions.

However, the report highlighted cost pressures facing airlines. Brent crude averaged around $87.3 per barrel in July, up 20 per cent year-on-year and month-on-month, while Singapore jet fuel prices touched nearly $155 per barrel, marking a 71 per cent annual increase.

The depreciation of the rupee to around 95.4 against the US dollar has also increased expenses related to aircraft leasing, maintenance and other dollar-linked costs.

Equirus said the aviation sector is currently navigating a mixed environment, with strong passenger demand being offset by elevated operating costs that could impact profitability in the near term.