Domestic air passenger traffic in India sees 6.3% growth

08 Nov 2024 CW Team

The domestic air passenger traffic reached 138.5 lakh in October, higher by 6.3 % in comparison to 130.3 lakh in the previous month, according to a report. The domestic air passenger traffic's year-on-year growth was 9.6 % in October and significantly higher by 12.8 % than pre-Covid levels of 122.8 lakh in October 2019, according to data by credit rating ICRA. For the first seven months of current fiscal (April-October), domestic air passenger traffic stood at 932.0 lakh with a YoY growth of 5.9 % In the first half this fiscal (H1 FY25), the international passenger traffic for Indian carriers stood at 162.6 lakh with a YoY growth of 16 %. The airlines' capacity deployment in October 2024 was higher than October 2023 by 7.6% , and higher by 5.2 % over September 2024, said the report. "The outlook for the Indian aviation industry remains stable, driven by expectations of moderate growth in domestic air passenger traffic and a relatively stable cost environment in FY2025," the report added. The pace of recovery in industry earnings is likely to be gradual owing to the high fixed cost nature of the business. ICRA expects the Indian aviation industry to report a net loss of Rs 20-30 billion in FY2025 and FY2026 compared to Rs 10 billion in FY2024 "due to anticipated pressure on yields as airlines strive to maintain adequate passenger load factor (PLF) amid continued elevated aviation turbine fuel (ATF) prices". The industry has been facing supply chain challenges and issues of engine failures for the Pratt and Whitney (P&W) engines supplied to various airlines. In FY2024, Go Airlines (India) Limited grounded half of its fleet due to faulty P&W engines, thus stalling its operations. InterGlobe Aviation Limited (IndiGo) also had more than 70 aircraft grounded as on September 30, due to the P&W engine issue, including the powder metal (used to manufacture certain engine parts) contamination factor with its P&W fleet. Overall, the Indian aviation industry had 134 aircraft for select airlines grounded as on June 30, which is 15-17 % of the total industry fleet, thus impacting overall industry capacity (as measured by available seat kilometre or ASKMs), said the report.

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

The domestic air passenger traffic reached 138.5 lakh in October, higher by 6.3 % in comparison to 130.3 lakh in the previous month, according to a report. The domestic air passenger traffic's year-on-year growth was 9.6 % in October and significantly higher by 12.8 % than pre-Covid levels of 122.8 lakh in October 2019, according to data by credit rating ICRA. For the first seven months of current fiscal (April-October), domestic air passenger traffic stood at 932.0 lakh with a YoY growth of 5.9 % In the first half this fiscal (H1 FY25), the international passenger traffic for Indian carriers stood at 162.6 lakh with a YoY growth of 16 %. The airlines' capacity deployment in October 2024 was higher than October 2023 by 7.6% , and higher by 5.2 % over September 2024, said the report. The outlook for the Indian aviation industry remains stable, driven by expectations of moderate growth in domestic air passenger traffic and a relatively stable cost environment in FY2025, the report added. The pace of recovery in industry earnings is likely to be gradual owing to the high fixed cost nature of the business. ICRA expects the Indian aviation industry to report a net loss of Rs 20-30 billion in FY2025 and FY2026 compared to Rs 10 billion in FY2024 due to anticipated pressure on yields as airlines strive to maintain adequate passenger load factor (PLF) amid continued elevated aviation turbine fuel (ATF) prices. The industry has been facing supply chain challenges and issues of engine failures for the Pratt and Whitney (P&W) engines supplied to various airlines. In FY2024, Go Airlines (India) Limited grounded half of its fleet due to faulty P&W engines, thus stalling its operations. InterGlobe Aviation Limited (IndiGo) also had more than 70 aircraft grounded as on September 30, due to the P&W engine issue, including the powder metal (used to manufacture certain engine parts) contamination factor with its P&W fleet. Overall, the Indian aviation industry had 134 aircraft for select airlines grounded as on June 30, which is 15-17 % of the total industry fleet, thus impacting overall industry capacity (as measured by available seat kilometre or ASKMs), said the report.

Real Estate

05 Sep 2025

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Infrastructure Transport

05 Sep 2025

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Infrastructure Transport

05 Sep 2025

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..