Indian Airlines to aim 50% global market share by FY28

CRISIL predicts that by 2027-28, Indian airlines will handle half of the country’s international air passenger traffic. This surge is being driven by fleet expansion, new routes, and improved domestic connectivity.

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As much as half of the country’s international air passenger traffic is expected to be catered to by Indian airlines by the financial year 2027-28, according to CRISIL.

Indian airlines’ share of international passenger traffic, including originating and terminating flights as well as traffic transitioning through the country, is expected to rise 700 basis points to around 50% by 2027-28, up from 43% in the previous fiscal year.

According to CRISIL Ratings, the improvement will be driven by Indian airlines deploying more aircraft and adding new international routes, as well as their inherent advantage of superior domestic connectivity when compared to foreign carriers.

The report stated that Indian carriers’ business profiles will improve as a result of their growing share of international traffic, which is more profitable than the domestic segment.

According to CRISIL, India’s international passenger traffic increased to approximately 70 million in fiscal 2024, up from a low of 10 million in pandemic-hit fiscal 2021, and has surpassed the pre-pandemic level.

Manish Gupta, Senior Director and Deputy Chief Ratings Officer at CRISIL Ratings, said, “increasing disposable incomes, easing visa requirements, growing number of airports and enhanced air travel connectivity are boosting international travel.”