India may land in top five with 12.7% growth in airline seat capacity

India is projected to experience a 12.7% overall airline seat capacity growth in 2024 compared to pre-pandemic levels in 2019, placing it fifth among the top 20 countries globally. The countries that have seen faster recovery than India include Saudi Arabia (17.1%), the United Arab Emirates (UAE) (15%), Mexico (14.4%), and Türkiye (12.3%). However, nearly half of the top 20 countries have not fully recovered to 2019 levels, including France, Australia, Russia, Canada, Thailand, and South Korea. In FY24, India’s seat capacity is expected to increase by 8% YoY, ranking seventh. However, other nations like Saudi Arabia and the UAE are ahead with higher growth. 

Despite these positive projections, India faces challenges in its airline capacity growth. IndiGo, which operates Airbus A320 and A350 aircraft, has about 70 grounded planes due to a delay in receiving parts from Pratt & Whitney, resulting in a loss of over 68,000 seats per day. However, with major airlines like Air India and IndiGo placing large aircraft orders, India’s aviation sector growth is expected to continue. Globally, seat capacity recovery in FY24 is only 2.4% above FY19 levels, with YoY growth at 6.6%. Analysts anticipate that travel demand may cool following the post-pandemic surge, with rising economic pressures, such as the cost of living and geopolitical challenges, likely to impact the sector heading into FY25. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.