New Delhi, April 6 -- The country's domestic air passenger traffic is likely to have grown as little as 3% in the year ended March 2026, marking its weakest expansion since the pandemic-hit FY21, and signalling a loss of momentum in a sector that grew over 50% in two of the last four years.

Passenger air traffic grew a muted 1.6% between April and February, according to Icra. The ratings agency estimates a 0-3% growth in FY26, according to a note published last month. The slowdown comes even as passenger load factors remained elevated at around 93%, Icra said.

The country's domestic traffic grew 59% and 56% in FY22 and FY23, respectively, according to numbers disclosed by the civil aviation regulator Directorate General of Civil Aviatio...