There has been an increase in people opting for flights in the past decade. With better connectivity between domestic and international destinations and improvement in lifestyle, modern India has been opting for air travel. Air passenger traffic in India is expected to increase further. According to a recent ICRA report, a growth of 8-11% in passenger traffic is expected in the country this fiscal year. This means it will reach a whopping 407-418 million passengers by March 2025.
The projected figures indicate a significant recovery from the impacts of the pandemic. The air traffic reached 376.4 million by March 2024. This already surpassed pre-pandemic levels by 10%. The current fiscal year promises even more robust growth that will be driven by various factors.
What are the factors driving growth of air traffic in India?
There are several elements contributing to this optimistic outlook. The increase in both leisure and business travel is a major driver. Enhanced connectivity to new domestic destinations and a constant rise in international travel also play crucial roles. Initiatives like Digi Yatra may have also contributed to this as it made air travel seamless. These travel trends indicate a strong recovery and a promising future for the aviation sector in India.
Revenue Boost for Airport Operators
The positive trend in passenger traffic in India can be seen in the financial outlook for airport operators. ICRA expects a 15-17% increase in revenue for Indian airport operators this fiscal year. This growth is likely expected to support the financial stability and expansion plans of major airport operators in the country.
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ICRA’s report also highlights several key players in the Indian aviation sector. These include the Airports Authority of India (AAI) and the operators of Delhi, Hyderabad, and Cochin international airports. These entities have played significant roles in the recovery and expansion of the aviation sector in India.
How did India contribute to the global passenger traffic?
India’s recovery in air passenger traffic stands out even on the global stage. In the year 2023, India accounted for 4.2% of global passenger traffic, up from 3.8% in 2019. While global passenger traffic reached 96% of pre-pandemic levels, India’s figures increased by 106%. This remarkable recovery is attributed to both a strong economic growth and the addition of new airport routes.
The Indian aviation sector is definitely on a strong recovery path. With the projected passenger traffic in India reaching new heights and substantial revenue growth for airport operators, the future looks promising. The continued efforts to address sectoral challenges and expand connectivity will further strengthen this positive trend. As India continues to outpace global recovery rates, the aviation sector is set for a bright and prosperous future.
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