Indian Airlines to Serve Half of Country's International Air Passenger Traffic by 2027-28

  • 07 May 2024

On May 2024, CRISIL predicted that Indian airlines will cater to around 50% of the country's international air passenger traffic by 2027-28, driven by fleet expansion and enhanced connectivity.

Key Points

  • Surge in Market Share: CRISIL anticipates Indian airlines' share in international passenger traffic to increase to around 50% by 2027-28, up from 43% in the previous fiscal year.
  • Growth Drivers: The growth will be propelled by Indian carriers expanding their fleets, opening new international routes, and benefiting from their robust domestic connectivity compared to foreign airlines.
  • Strengthening Business Profiles: With a higher share in international traffic, Indian airlines are expected to enhance their business profiles, as international routes tend to be more profitable than domestic ones.
  • Post-Pandemic Recovery: India's international passenger traffic rebounded from pandemic lows, reaching around 70 million in fiscal 2024, driven by increasing disposable incomes and easing visa requirements.
  • Government Initiatives: Government initiatives to promote India as a tourism hub are likely to boost inbound traffic, further supporting the growth of international passenger numbers.
  • Network Expansion: Indian airlines have added 55 new international routes in the past 15 months, aiming to offer direct flights from additional cities to popular destinations, reducing flying time and layovers.
  • Future Prospects: With investments in widebody and long-range narrow-body aircraft, Indian airlines aim to capitalize on the growing international travel demand, potentially achieving a CAGR of 14-15% in the international segment over the next four fiscal years.