ICRA has revised its projection for India's domestic air passenger traffic growth in FY2026 to 0-3 percent, down from an earlier forecast of 4-6 percent. This downward revision is attributed to several factors including an aircraft accident in June 2025 that impacted traveler sentiment, cross-border escalations causing flight disruptions, and headwinds from US tariffs affecting business travel. Growth in the first eight months of FY2026 was recorded at 2.2 percent.