Indian airlines are on the brink of a significant milestone as they gear up to capture nearly half of the country’s international passenger traffic by the financial year 2027-28 (FY28), as per a recent report by Crisil Ratings.
The report, released on Monday, underscores the remarkable growth trajectory of Indian carriers in the global aviation landscape, driven by strategic expansions and fleet enhancements. Projected Growth Trajectory: According to the Crisil report, Indian airlines are poised to witness a substantial surge in their market share, climbing from 43% in FY24 to an estimated 50% by FY28. This anticipated growth is attributed to several key factors, including the addition of new aircraft, expansion of international routes, and the inherent advantage of superior domestic connectivity compared to foreign competitors.
Boosting Business Profiles: The rise in the percentage of international traffic is expected to bolster the business profiles of Indian carriers, as highlighted in the report. With less intense competition on international routes and higher yields, international operations are proving to be more profitable for Indian airlines compared to domestic routes. This trend underscores the strategic importance of tapping into the burgeoning international passenger market.
Strategic Expansions: To capitalise on the growing international passenger traffic from India, Indian airlines have strategically expanded their route networks. Over the past 15 months alone, they have added 55 new international routes, surpassing a total of 300 routes. These expansions primarily target popular long-haul destinations in the United States, Europe, and Australia, aiming to streamline travel experiences and eliminate layovers for passengers.
Surpassing Pre-Pandemic Levels: The surge in India’s international passenger traffic reflects a broader trend of increasing outbound travel, driven by factors such as rising disposable incomes, eased visa requirements, and enhanced air travel connectivity. In FY24, international passenger traffic reached around 70 million, surpassing pre-pandemic levels and signalling a robust recovery in air travel demand. Overall, the Crisil report paints a promising picture of Indian airlines’ prospects in the global aviation market, underscoring their growing influence and competitiveness on the international stage. With strategic initiatives and favourable market conditions, Indian carriers are poised to strengthen their foothold and emerge as key players in the years to come.
