New Delhi, Oct. 29 -- India's domestic air passenger traffic is showing signs of improvement in October, with the pace of decline expected to ease to 4-5 per cent year-on-year, supported by festive travel demand and airlines restoring flight capacity, according to an equity research report by Jefferies.

The report said the improvement comes after four consecutive months of declining domestic passenger traffic.

"After a 6% YoY decline in departure pax in 2Q, Oct MTD is tracking a narrower estimated 4-5% decline, while rising MoM, supported by airlines reinstating some capacity & festive-led demand," Jefferies said in its report.

The brokerage noted that passenger traffic had shown a similar recovery during the festive season last year....