Indian aviation, one of the fastest growing in the world, is also a success story when it comes to resuming travel after the COVID-19 crisis, helped by its huge domestic market. There have been challenges along the way, but it appears the industry is overcoming them and heading towards double-digit growth by the end of the current fiscal year.

15% expected growth

India continues to record record growth in air traffic, with aviation consultancy CAPA India estimating that passenger numbers will be 155 million by the end of this financial year in March 2024. This equates to growth of approximately 15% and is in line with the company's expectations. previous estimate in March of this year.

Even though international travel is slowing, India's huge domestic market left most airlines well positioned to recover from the harrowing years of the pandemic. From April to December, around 70 million passengers will have flown in the country, which represents significant growth in recent years.

Growth despite challenges

What is also worth noting is that this growth comes at a time when Indian Airlines is facing unique challenges, including the grounding of flights by a major national airline, Go First, and the suspension of operations of dozens of aircraft due to issues. with the supply chain.

CAPA estimates that India will have close to 200 aircraft on the ground by March 2024. The engine shortage, along with the inspection of GTF engines by Pratt & Whitney, has had a major impact on the capacity of airlines such as IndiGo and played an important role in the suspension of Go First. .

Still, a 15% growth indicates the resilience of the Indian domestic market and the efforts of airlines to somehow meet the growing demand by resorting to short-term wet and dry leasing.

IndiGo and Air India Group are the leaders

It will come as no surprise that IndiGo and airline group Air India will take most of the responsibility for the expected growth. CAPA India estimates that IndiGo could even post record profits this financial year and said in its report: