Indian airlines to carry 50 of India’s global traffic by FY28

The share of Indian air carriers in international passenger traffic originating from, terminating in, or transitioning through India is set to surge 700 basis points (bps) to 50 per cent by fiscal 2028 from 43 per cent in fiscal 2024, driven by airlines deploying additional aircraft and adding new routes in the international segment, as well as their inherent advantage of superior domestic connectivity compared with foreign carriers.

- NIVEDITA MUKHERJEE

The business profiles of Indian carriers will strengthen as a result of their rising share in international traffic, which is more profitable than the domestic segment. India’s international passenger traffic grew to around 70 million in fiscal 2024, from a low of 10 million in pandemic-hit fiscal 2021, to surpass the pre-pandemic level. The share of Indian airlines, which was rising steadily earlier, picked up pace since the pandemic. Manish Gupta, Senior Director, CRISIL Ratings observes a noticeable shift in spending patterns has emerged after the pandemic, as evident in the increasing inclination of Indians towards international leisure travel. Increasing disposable incomes, easing visa requirements, growing number of airports and enhanced air travel connectivity are boosting international travel.