New Delhi [India], March 20 (ANI): A report from the ratings agency suggests that there is substantial potential for expansion for Indian air carriers due to the considerable presence of foreign airlines on international routes. ICRA .
The forecast indicates that international air passenger traffic for Indian airlines is expected to increase by 15-20 percent in fiscal years 2025 and 2026, compared with an annual growth rate of 7-10 percent for domestic air traffic during the same period.
This expansion is fueled by the rise of e-visas and visa-on-arrival Coverage, together with the Indian government's initiative to promote theme-based tourism centers and notable landmarks.
In the initial nine-month period of FY2025, international air travel involving India saw a total of 56.9 lakh passengers, marking a YoY growth of 11.4 percent and a 9.2 percent surge relative to the pre-pandemic figures seen in FY2020.
Indian airlines experienced a 40.7 percent rise in international passenger traffic above pre-pandemic levels, showcasing their quick expansion.
A significant change in the sector has been the emergence of low-cost carriers (LCCs) currently make up 72 percent of the overall total. international passenger traffic For Indian carriers in the first nine months of FY2025. This represents a notable shift from earlier years when full-service carriers (FSCs) dominated international routes.
Nonetheless, Indian airlines encounter numerous obstacles such as stringent regulatory policies, sluggish reform processes, and insufficient aviation facilities, all of which have traditionally constrained their growth on global flight paths.
Consequently, international airlines have kept their dominant position, holding onto a market share that has fluctuated between 55 percent and 60 percent over the last three years. However, there remains substantial opportunity for domestic carriers to gain a bigger slice of this market.
ICRA anticipates that Indian airlines will gain advantages from expanding their networks and introducing wider-bodied planes, allowing for an increased number of long-distance global journeys. Over time, as these carriers progressively expand their international routes, they are expected to bolster their standing within the market over the next few years.
ICRA indicates that even with obstacles like stringent regulations and inadequate facilities, Indian carriers are poised to broaden their footprint in the international arena. (ANI)
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