Domestic air passenger traffic rose 5.1 per cent to over 1.38 crore in June on an annual basis but declined marginally compared to May, a report said on Friday. Rating agency ICRA also said the country's aviation industry is projected to report a net loss of Rs 2,000 to 3,000 crore in FY2026, amid rising ATF prices and geopolitical risks. 

While maintaining a stable outlook for the industry, ICRA said that supply chain disruptions, including Pratt & Whitney engine issues, continue to impact capacity and costs. "For June 2025, domestic air passenger traffic was estimated at 138.7 lakh, 5.1 per cent higher than 132.1 lakh in June 2024. However, it witnessed a marginal decline of 1.3 per cent on a sequential basis. The airlines' capacity deployment in June 2025 was 4.9 per cent higher than June 2024; however, it was 2.3 per cent lower compared to May 2025," it said.