India has emerged as a major player in the global aviation market, with a revival in domestic travel that has brought it closer to pre-pandemic levels, according to a report by the International Air Transport Association (IATA). The study shows that domestic travel in India missed the pre-Covid level by only 2.2 percent in February 2023, as measured by passenger revenue kilometres (PRK). India is also the top domestic market in terms of passenger load factor (PLF), compared to countries like the US, China, and Japan, with PLFs of 81.6 percent in February and 85.2 percent in January, among others.
India’s Growth in Domestic Travel
In recent months, India has seen a significant growth in domestic air passenger traffic, with February 2023 recording a surge of 25.2 percent compared to the same period the previous year. This figure puts domestic air passenger traffic in India at 97.2 percent of the February 2019 level. The IATA report also estimated that nearly 35 to 40 million Indians travel by air every year, with many of them being repeat flyers.
The growth in domestic travel is attributed to a rapid rise in middle-class incomes, a change in spending habits, and lucrative offers from airlines. In fact, the report suggests that India could become the fastest-growing aviation market for years to come.
IndiGo Airlines
IndiGo Airlines, the largest airline in India in terms of its fleet, is leading the growth in domestic air travel. The airline currently provides over 35 percent of all available seat kilometres on flights in and out of Indian airports and almost 48 percent of all flights across India’s international and domestic markets. In March 2023, French Finance Minister Bruno Le Maire reported that IndiGo Airlines could announce an order for “several hundred” Airbus aircraft at the Paris Air Show to be held in June 2023 at Paris Le Bourget Airport.
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International Airlines Eyeing India
International airlines are also eyeing the growth potential of the Indian aviation market. Wizz Air, a 20-year-old budget carrier from Hungary, sees India as a growing opportunity, with immense development in the country. The emerging middle class in India is expected to boost tourism, and Wizz Air is looking into opportunities there. Etihad Airways is also planning to expand its presence in the Indian aviation market, with India being one of its top three markets. The airline has identified six other Indian cities where it wants to reach out to, in addition to its current destinations like Delhi and Mumbai.
Conclusion
India’s growth in the domestic aviation market is a promising sign for the country’s economy and the aviation industry as a whole. With the potential to become the fastest-growing aviation market in the world, India’s air travel industry is poised for significant growth in the coming years.
Source: MoneyControl
