India's air passenger traffic to see 7% growth in 2025: Alton Aviation

India’s air passenger traffic is projected to grow at a strong pace of 7% in 2025, driven by a growing middle class and increasing air travel affordability, according to Director at Alton Aviation Consultancy, Mr. Joshua Ng. India accounts for 10% of Asia-Pacific’s domestic and international air traffic and has already returned to pre-pandemic levels. Expanding 150 new airports nationwide further supports India's aviation development programme. Mr. Joshua Ng highlighted that the order book of nearly 1,900 aircraft among Indian airlines will fuel growth. At the same time, the Air India-Vistara merger is expected to bring greater stability, solidifying Air India and IndiGo as leading full-service and low-cost carriers, respectively. 

From a global perspective, air traffic has returned to pre-pandemic levels, with the aviation industry expected to grow at 4% per year between 2024 and 2034, supported by a 2.7% annual rise in global Gross Domestic Product (GDP). The Asia-Pacific region is projected to remain the largest aviation market, with an annual growth rate of 5.1%, driven by China and India. However, major aircraft deliveries face a backlog of 9.7 years, as per data from the Centre for Aviation (CAPA) and Alton’s analysis. While the industry is set to achieve record passenger numbers and revenue in 2025, risks such as normalising yields, inflation, and geopolitical pressures persist. Supply chain disruptions and labour shortages post-COVID-19 remain major challenges, making optimised aircraft utilisation, reduced turnaround times, and strategic wet-leasing crucial for airlines navigating the evolving market landscape. 

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