India's Aviation Industry Shows Positive Growth Amid Rising Air Traffic
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Synopsis
As of March 23, 2023, India's aviation industry displays a robust outlook, highlighted by an 11.04% growth in domestic air passenger traffic in February. The sector is expected to continue this positive trend with anticipated moderate growth in the coming years.
Key Takeaways
- 11.04% growth in domestic air passenger traffic in February.
- ICRA report shows 1,551 lakh passengers in 11 months this year.
- IndiGo leads market with 63.7% share.
- Projected growth of 7-10% for domestic traffic in FY25 and FY26.
- IndiGo is world's second fastest-growing airline.
New Delhi, March 23 (NationPress) The aviation sector in India showcases a promising outlook, with domestic air passenger traffic witnessing a remarkable growth of 11.04 percent in February this year compared to the same month last year, as per official statistics.
An ICRA report indicates that domestic air traffic has reached approximately 1,551 lakh passengers over the first 11 months of the current financial year, reflecting a 7.7 percent increase from the previous year and a 12.9 percent rise compared to pre-Covid levels of 1,338 lakh in 11MFY20.
Moreover, during the initial 10 months of the financial year (April-Jan), international passenger traffic for Indian airlines amounted to 280.9 lakh, marking a year-on-year growth of 14.8 percent, which is 41.3 percent higher than pre-Covid figures of around 198.8 lakh.
The ICRA report maintains that the outlook for the Indian aviation sector remains stable, fueled by expectations of moderate growth in domestic air passenger traffic and a relatively steady cost environment in FY25 and FY26.
According to data from the Directorate General of Civil Aviation (DGCA), India’s scheduled domestic flight operators transported around 1.40 crore passengers in February, up from 1.26 crore in the same month last year.
The DGCA’s monthly report reveals that IndiGo remains the largest airline in the country, capturing 63.7 percent of the market share, having flown 89.40 lakh passengers in February 2025.
Following IndiGo is the Air India Group, which includes Air India Express and carried 38.30 lakh passengers, resulting in a 27.3 percent market share for Tata Group’s airline.
Akasa Air, a recently launched airline, transported 6.59 lakh passengers, securing a 4.7 percent market share. SpiceJet, led by Ajay Singh, carried 4.54 lakh passengers, giving it a 3.2 percent market share.
Among smaller carriers, Alliance Air transported 0.86 lakh passengers, achieving a market share of 0.6 percent, while Star Air flew 0.60 lakh passengers, accounting for 0.4 percent of the market.
ICRA continues to project a ‘stable’ outlook for the aviation industry, attributing it to enhanced pricing power and moderate traffic growth forecasts. Domestic air traffic is predicted to grow by 7-10 percent in FY2025 and FY2026, while international passenger traffic for Indian carriers is expected to increase by 15-20 percent.
Interestingly, IndiGo Airlines has emerged as the world’s second fastest-growing airline in terms of seat capacity, which surged by 10.1 percent year-on-year to over 134.9 million seats in 2024. This growth ranks it just behind Qatar Airways, which achieved a 10.4 percent growth in seat capacity.
IndiGo has also been recognized as the fastest-growing airline globally in terms of flight frequency growth, with a 9.7 percent increase in 2024, recording 7,49,156 flights for the year.
According to OAG, IndiGo holds one of the largest aircraft orders worldwide, with over 900 aircraft on order, and was the leading recipient of 58 new Airbus aircraft in 2024. Nevertheless, it is reported that around 80 aircraft remain inactive due to MRO-related supply chain challenges.
