India’s aviation growth to stay muted in FY26 as capacity curbs, disruptions weigh on traffic

However, some analysts still believe the outlook for FY27 is stable. “Looking ahead, the FY27 outlook appears stable, subject to geopolitical developments,” Shah said. “In a normal scenario, industry growth is likely to remain in the high single digits, driven more by aircraft supply than demand, as underlying demand continues to be robust, reflected in healthy passenger load factors. Accordingly, airlines should prioritize faster aircraft inductions to bridge the supply gap.”