Indias Domestic Air Passenger Traffic to Reach 155 Million in FY23

According to a report released on Monday by aviation advisory firm CAPA India, India's domestic air passenger traffic is anticipated to reach around 155 million in the current financial year, while the number of grounded aircraft of domestic carriers is expected to be around 200.

International Air Passenger Traffic

In the year ending March 2024, international air passenger traffic is anticipated to reach about 70 million. Although the strength of recovery has slowed in the previous few months, domestic air traffic in FY2024 has remained above FY2020 levels every month to date. Since May 2023, international traffic has generally stayed in line with FY2020 but is anticipated to increase in the remaining months of the year.

Industry Profitability

According to the report, despite having a very challenging FY2024 from an operational perspective due to Pratt & Whitney engine problems, IndiGo is anticipated to post a record profit of USD 500 million and will see its cash balances increase by USD 1.2+ billion. Overall industry profitability is anticipated to be mostly consistent with the initial projection of a loss of USD 1.6-1.8 billion, with full-service carriers accounting for USD 1.4-1.5 billion and low-cost carriers accounting for USD 200-300 million.

Fleet Size and Grounded Aircraft

The report predicts that at the end of March 2024, airlines will have an operational fleet of 588 planes. As of March 31, 2024, nearly 200 planes are anticipated to remain grounded, with IndiGo accounting for more than 90 of them. SpiceJet will have roughly 27 grounded planes, while Air India is anticipated to have between 25 and 30. Currently, there are 161-166 planes from IndiGo, Air India, Go First, and SpiceJet that are not in operation.

The number of aircraft registered at the end of FY2024 is anticipated to be close to 790, an increase of about 100 during the year, with the Air India Group accounting for more than 60 of those aircraft.

The Indian aviation industry is on the path to recovery, with domestic air passenger traffic expected to reach 155 million in the current financial year. Despite challenges such as grounded aircraft and rising fuel costs, IndiGo is expected to post a record profit. The number of operational aircraft is expected to increase to 588 by the end of March 2024, with the Air India Group accounting for a significant portion of the growth.