Vande Bharat Traffic Jumps 34% in FY26 as Domestic Aviation Growth Slows

Passenger traffic on the Vande Bharat Express increased by nearly 34% year-on-year in FY26, as per news reports. Total passengers rose from 2.97 crore in FY25 to 3.98 crore in FY26. 

Data from the Ministry of Railways shows that since its launch in February 2019, the service has carried more than 9.1 crore passengers across 1 lakh trips. The increase shows higher usage across existing routes. 

Sleeper Rollout Expands Network 

A sleeper variant of the service was introduced in January 2026, adding overnight routes to the network. In the first three months, 119 trips were operated, carrying about 1.21 lakh passengers. 

The initial numbers indicate utilisation on longer routes, where sleeper trains continue to account for a large share of rail travel. 

Aviation Growth Remains Subdued 

Domestic air passenger traffic grew at a slower pace during the same period. Traffic increased by 1.6% year-on-year in the first 11 months of FY26. 

Estimates by CRISIL indicate that full-year growth is expected to remain between 0% and 3%, with total passenger volumes projected at 165-170 million. 

Regional Aviation Expansion  

The government has announced the next phase of the UDAN Scheme with a total outlay of ₹28,840 crore. The plan includes development of 100 airports and 200 helipads between FY27 and FY36. 

This follows UDAN 1.0, implemented over FY17-26 with an allocation of ₹8,523 crore, focusing on regional connectivity and route viability. 

Limited Share in Overall Traffic 

Despite ongoing expansion, UDAN routes account for only 2-3% of total domestic passenger traffic. Among these, only Hindon and Kannur airports handled more than 1 million passengers in FY26. 

Regional airports have seen higher growth after the pandemic, with traffic rising 3 to 10 times between FY20 and FY25, although from a low base. Overall passenger traffic increased by about 1.2 times during the same period. 

Read More: Air India Seeks Capital Injection from Tata and SIA Following $2.4 Billion Loss! 

Conclusion 

Passenger growth trends in FY26 show higher increases in rail travel, while aviation recorded slower expansion despite continued infrastructure additions. 

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