New Delhi
India’s domestic air passenger traffic surged to 138.5 lakh in October, marking a 6.3% increase compared to the 130.3 lakh passengers recorded in September, according to a report released on Thursday. This growth is also 9.6% higher year-on-year and up by 12.8% compared to pre-Covid levels of October 2019.
For the first seven months of the current fiscal year (April-October), domestic passenger traffic totaled 932.0 lakh, reflecting a year-on-year growth of 5.9%. In terms of international travel, Indian carriers saw a 16% increase in international passenger traffic, reaching 162.6 lakh in the first half of FY25.
The report highlighted that airlines’ capacity deployment in October 2024 grew by 7.6% compared to October 2023, and by 5.2% over September 2024. The outlook for the Indian aviation industry remains stable, driven by moderate growth expectations in domestic traffic and a stable cost environment.
However, the industry faces challenges, including high fixed costs and supply chain issues, especially related to Pratt and Whitney (P&W) engines. As a result, ICRA predicts the aviation industry will report a net loss of Rs 20-30 billion in FY2025 and FY2026, due to pressure on yields and elevated aviation turbine fuel (ATF) prices.
