The dominance of Indian airline companies is going to increase in the coming years. The world’s renowned credit rating agency CRISIL said on Monday that half of the country’s international air passenger traffic is expected to be fulfilled by Indian airlines by the financial year 2027-28. The share of Indian airlines in international air passenger traffic, which includes traffic originating or terminating as well as transiting through the country, is set to increase by 700 basis points to nearly 50 per cent by 2027-28, PTI reported. Which was 43 percent in the last financial year.
Because of this you will get strength
According to the news, Crisil Ratings said in its report that this improvement will be driven by Indian airlines deploying additional aircraft and adding new routes in the international sector as well as their advantage of better domestic connectivity compared to foreign airlines. The report said the business profile of Indian airline companies will be strengthened by their increasing share in international traffic, which is more profitable than the domestic segment.
International air passenger traffic in fiscal year 2024
According to CRISIL, India’s international air passenger traffic is set to grow from a low of 10 million in the pandemic-hit FY2021 to nearly 70 million in FY2024, surpassing pre-pandemic levels. It said the share of Indian airlines, which was growing steadily earlier, has gained momentum since the pandemic. Manish Gupta, senior director and deputy chief rating officer, CRISIL Ratings, said rising disposable income, easing of visa requirements, increasing number of airports and increased air travel connectivity are boosting international travel.
International air passenger traffic will increase
Gupta said the government’s focus on making India a tourism hub could also boost inbound traffic. International passenger traffic is likely to grow at a compound annual growth rate (CAGR) of 10-11 per cent over the next four financial years, compared to just 5 per cent CAGR in the four years before the pandemic. Indian airlines have added 55 new international routes in the last 15 months, taking their count to over 300.
These include direct flights to popular long-haul destinations from additional cities in the United States, Europe and Australia, effectively reducing flight times and eliminating layovers. CRISIL said Indian airlines have certain natural advantages over foreign airlines in capturing a larger share of the country’s international traffic.
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