India’s international aviation market saw a clear shift in passenger traffic in the first quarter of calendar year 2026, with foreign airlines gaining ground as Indian carriers lost passengers amid disruptions caused by the West Asia conflict, according to data from aviation regulator DGCA.
International passenger traffic in India fell 1.2% year-on-year to 1.91 crore in Q1CY26, reflecting the impact of airspace disruptions, higher fares and operational constraints triggered by the conflict.
While overall traffic declined, foreign airlines emerged as relative beneficiaries. Passenger traffic on foreign carriers operating to and from India rose by nearly 7 lakh passengers to 1.1 crore during the quarter. In contrast, Indian carriers saw international passenger traffic decline by 8.7 lakh passengers year-on-year to 80.9 lakh, according to DGCA data analysed by CNBC-TV18.
The data suggests that a large share of passengers lost by Indian airlines shifted to foreign carriers, particularly those able to sustain operations and expand connectivity through alternate routes.
Among overseas airlines, the biggest gainer was Etihad Airways, which saw passenger traffic in India rise 10% year-on-year to 7.77 lakh in Q1CY26. Singapore Airlines added more than 20,000 passengers in India during the quarter, taking total traffic to 6.28 lakh. Lufthansa added over 45,000 passengers year-on-year, while British Airways added more than 18,000 passengers.
On the domestic side, Air India recorded the steepest fall in international traffic among Indian carriers. The airline saw international passenger traffic decline by 4.3 lakh passengers year-on-year in Q1CY26. IndiGo also reported a decline, with international traffic falling 2.6% from 39.3 lakh passengers to 38.3 lakh during the quarter.
22/05/2026 Shivani Bazaz/CNBC TV18
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