Crisil predicts Indian airlines to carry 50 percent of international traffic by 2028

Crisil claims that Indian airlines to carry 50 percent of international traffic by 2028
Indian airlines major IndiGo. Photo Courtesy: Unsplash

Indian airlines, carrying international passenger traffic originating from, terminating in, or transitioning through India, are expected to witness a surge of 50 percent by fiscal 2028 from the current 43 percent in 2024, according to Crisil Ratings.

As per the agency, the improvement would be seen as a result of Indian airlines deploying additional aircraft and adding new routes in the international segment.

The spike would also happen due to the inherent advantage of superior domestic connectivity compared to foreign carriers.

The business profiles of Indian carriers will strengthen from their rising share in international traffic, which is more profitable than the domestic segment. India’s international passenger traffic grew to around 70 million in the fiscal year 2024, from a low of 10 million in the pandemic-hit fiscal 2021.

The spike was witnessed more after the pandemic with an increased inclination of Indians for international leisure travel.

According to Crisil Rating, international passenger traffic is expected to register a compound annual growth rate (CAGR) of 10-11 percent over the next four financial years, against a mere five percent CAGR in the four years before the pandemic.