Indian Economy News

Regional airports found wind beneath their wings in FY24

Air travel in India's rural areas saw a significant surge last fiscal year, driven by government initiatives and expanded airline services to underserved regions. According to Civil Aviation ministry data, regional airports reported substantial increases in passenger traffic, ranging from 30% to a remarkable 702% in FY24 compared to the previous year.

Diu Airport, operational since 2018, saw a 65% rise in passenger traffic to 66,252, bolstered by IndiGo's flights to Ahmedabad and Surat, achieving a strong average passenger load factor (PLF) of 69%. Pantnagar Airport recorded a 55.8% increase with 110,824 passengers, while Shillong witnessed over 40% growth, driven by competitive fares in the Northeast. Tezpur Airport marked an exceptional 702% passenger surge, supported by its low starting fares of US$ 1.80 (Rs. 150) and a robust PLF of 68% on its routes.

This growth highlights India's aviation sector's shift towards improved regional connectivity, underpinned by schemes like UDAN that promote affordable air travel. Despite some airports showing modest single-digit increases, overall expansion reflects airlines' strategic efforts to link regional airports with major hubs, enhancing accessibility and fostering economic development nationwide.

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