New Delhi, June 9 -- India's aviation sector may face a weak first half this fiscal year as passenger traffic stagnates because airlines have fewer aircraft available to operate, according to GMR Airports Ltd, the country's largest private airport operator.

GMR, which handles roughly three out of every 10 air passengers in India, expects traffic growth to remain flat in April-September before recovering in the second half of the year as airlines restore capacity and two new airport assets are added to its portfolio.

The outlook from GMR is significant because, together with Adani Airports, they handle about half of India's air passenger traffic, making the two airport operators a key gauge of aviation demand. The forecast also suggests ...