Indian airlines are on track to dominate the country’s international air passenger traffic, with projections from Credit Rating Information Services of India (CRISIL) indicating their share could reach 50% by the fiscal year 2027-28, up from 43% previously. This surge is fueled by Indian carriers’ expansion strategies, such as increasing their fleet, introducing new routes, and leveraging their strong domestic network compared to foreign rivals.
CRISIL forecasts that Indian airlines will strengthen their business profiles as they capture a larger portion of the more lucrative international travel market. The post-pandemic shift towards international leisure travel, driven by rising disposable incomes and eased visa regulations, is a key factor contributing to this growth. Additionally, government initiatives aimed at boosting tourism are expected to further stimulate inbound international passenger traffic.
India’s international passenger numbers have seen a remarkable rebound, reaching approximately 70 million in fiscal year 2024 from a pandemic-induced low of 10 million in fiscal year 2021. This resurgence has propelled Indian carriers’ market share upward, facilitated by their strategic addition of 55 new international routes in the past 15 months, totaling over 300 routes. These expansions include direct flights from more cities to popular destinations like the United States, Europe, and Australia, reducing travel time and layovers for passengers.
Moreover, Indian airlines are enhancing connectivity on short- and medium-haul international routes and establishing codeshare agreements with global carriers, providing seamless travel experiences for passengers. These developments reflect the dynamic growth and competitiveness of India’s aviation industry in the international market.