New Delhi [India], December 9 (ANI): India's aviation sector is witnessing a modest recovery in demand, but rising fuel prices and a weakening rupee are emerging as major headwinds that could pressure airline profitability in the coming quarters, according to a new industry analysis by J P Morgan.

The report, India Aviation Insights, notes that while domestic traffic has begun to improve after a weak second quarter, key cost variables, aviation turbine fuel and forex, pose significant challenges going forward. The study tracks high-frequency airfare and traffic data across major domestic and international routes.

According to the findings, domestic airfares for Q3 FY26 to date remain largely flat year-on-year, despite a sequential uptick on some routes. Airfares declined across nine of

See Full Page