International aviation recovery gathers pace as West Asia tensions ease; domestic demand remains resilient: Report

International aviation recovery for Indian carriers is accelerating as tensions in West Asia ease, while domestic demand remains strong, according to an Equirus Securities report. The report said that reduced geopolitical pressure enabled airlines to normalize international schedules and operations gradually, and that falling global aviation fuel prices offered cost relief. It cited growth in international traffic carried by Indian airlines to around 2.3 million passengers in May, up 24% from the previous month, along with a 22% sequential rise in departures. Passenger load factor improved to 76.6%, indicating demand recovering faster than capacity additions during the month. Domestically, passenger traffic rose to about 15.4 million in May, up 10% year-on-year and 11% month-on-month, while flight departures increased 5%. The report also noted Brent averaged about USD 72.9 per barrel in May, down 21% month-on-month, but warned a weak rupee near 94.7/USD continued to pressure costs.