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

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.