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Informist, Thursday, Mar. 20, 2025

 

MUMBAI – Indian carriers are expected to grow their international air passenger traffic 15-20?ch in 2024-25 (Apr-Mar) and FY26, supported by the increasing adoption of electronic visas, coverage of visa-on-arrival, and the government's effort to develop theme-based tourist centres and destinations in the country, ratings agency ICRA said in a report. This will be higher than the expected domestic air passenger growth of 7-10% for Indian carriers in FY25 and FY26 each.    

 

Further, the network expansion plans and induction of wide-body aircraft by some of the domestic airlines are expected to support Indian carriers to gain market share on international routes, the report said. India is among the few countries globally where domestic airlines do not have a leading market share on international routes. This is mainly due to the historically restrictive policy regime of the country, slow pace of reforms and lagging aviation infrastructure, ICRA said. The focus on a gradual increase in international routes by Indian carriers is, however, expected to support their market share. 

 

For the 10 months to January, the international air passenger traffic for Indian carriers rose 15% on year to 28.09 million, marking a 41% jump from pre-pandemic levels of around 19.88 million. Prior to FY20, most international travel to or from India was managed by full-service carriers. Since then, the surge in international air passenger traffic has been primarily driven by low-cost carriers, accounting for 72% of total international air passenger traffic for Indian carriers during Apr-Dec of FY25, the report said.  

 

On the domestic passenger front, traffic grew 7.7% on year and 12.9% over the pre-COVID levels to 155.1 million in the Apr-Feb of FY25. The airlines' capacity deployment in February improved 5.1% on year but was down 7.2% over January, according to ICRA. In February, domestic aviation industry operated at a passenger load factor of around 95.3% against 89% a year ago and around 87.7?bruary 2020. The price of aviation turbine fuel during Apr-Jul was up 5% on year, whereas during Aug-Mar it was down 14% on year. Overall, in FY25, aviation turbine fuel prices fell 8% on year, the report said. End. 

 

Reported by Arya S. Biju

Edited by Akul Nishant Akhoury

 

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