Indian Economy News

Indian airlines to have 50% market share in international passenger traffic by FY28: CRISIL

CRISIL predicts that Indian airlines will dominate up to 50% of the country's international air passenger traffic by FY28, a significant increase from the previous fiscal year's 43%. This growth is attributed to the expansion of Indian carriers' fleets, the opening of new international routes, and their superior domestic connectivity compared to foreign airlines.

Driven by rising disposable incomes, easing visa requirements, and government initiatives to boost tourism, international passenger traffic in India has rebounded strongly, surpassing pre-pandemic levels. CRISIL forecasts a robust compound annual growth rate (CAGR) of 10-11% in international travel over the next four fiscal years, with Indian airlines aiming to capitalize on this trend through strategic expansions and investments in wider aircraft fleets. With a projected CAGR of 14-15% in the international segment, Indian carriers could potentially secure a 50% market share by FY28.

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