India’s air cargo handling projected increase to 2.5 mt in 2023

21 Mar 2023 CW Team

According to Frederic Horst, Managing Director, Trade and Transport Group, cargo handled at Indian airports could reach 2.4-2.5 million tonnes by 2023, even as passenger/belly capacity returns. "With 5-6 Indian conglomerates investing abroad, the India link will always be strong. So, in terms of trade, India is in a good position."

International carriers such as Aerologic (Lufthansa Cargo x DHL), Cathay Pacific, and Turkish dominate India's air cargo market, with only a few domestic players such as IndiGo, Air India, and Pradhaan Air visible. Aerologic is currently the largest carrier in the Indian market (14%), followed by Qatar Airways (12%), Emirates (12%), Air India/Air India Express (8%), and Cathay Pacific (7%). Despite fewer domestic carriers operating, domestic traffic has recovered to pre-pandemic levels in comparison to international traffic, owing to a rapid increase in e-commerce, express, and general freight traffic.

According to the report, Air India and Air India Express account for two-thirds of all traffic carried by Indian carriers, with IndiGo, Vistara, and SpiceJet accounting for the remainder. According to the report, there is a surplus of high frequency belly capacity, which is why freighter operations have struggled in the Indian market. Blue Dart Aviation, SpiceJet, IndiGo, Quikjet, and Pradhaan Air Express are the five existing freighter operators.

With economic and trade growth expected to outperform in the near term, there are opportunities for growth, driven by intermediate and manufactured goods imports and exports, as well as e-commerce traffic. India could benefit from a shift away from China by the United States and Europe, but this is dependent on how manufacturing capacity develops, particularly in the consumer goods and high-tech sectors.

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According to the Trade and Transport Group's recently published report 'India Air Cargo Outlook 2023,' India generated 2.2 million tonnes of traffic in 2018, with a projected increase to 2.5 million tonnes in 2023. In terms of relative size, our air cargo traffic was one-fifth the size of China's and one-tenth the size of the US air cargo market, with roughly 30% of traffic generated domestically and the remainder internationally. According to Frederic Horst, Managing Director, Trade and Transport Group, cargo handled at Indian airports could reach 2.4-2.5 million tonnes by 2023, even as passenger/belly capacity returns. With 5-6 Indian conglomerates investing abroad, the India link will always be strong. So, in terms of trade, India is in a good position. International carriers such as Aerologic (Lufthansa Cargo x DHL), Cathay Pacific, and Turkish dominate India's air cargo market, with only a few domestic players such as IndiGo, Air India, and Pradhaan Air visible. Aerologic is currently the largest carrier in the Indian market (14%), followed by Qatar Airways (12%), Emirates (12%), Air India/Air India Express (8%), and Cathay Pacific (7%). Despite fewer domestic carriers operating, domestic traffic has recovered to pre-pandemic levels in comparison to international traffic, owing to a rapid increase in e-commerce, express, and general freight traffic. According to the report, Air India and Air India Express account for two-thirds of all traffic carried by Indian carriers, with IndiGo, Vistara, and SpiceJet accounting for the remainder. According to the report, there is a surplus of high frequency belly capacity, which is why freighter operations have struggled in the Indian market. Blue Dart Aviation, SpiceJet, IndiGo, Quikjet, and Pradhaan Air Express are the five existing freighter operators. With economic and trade growth expected to outperform in the near term, there are opportunities for growth, driven by intermediate and manufactured goods imports and exports, as well as e-commerce traffic. India could benefit from a shift away from China by the United States and Europe, but this is dependent on how manufacturing capacity develops, particularly in the consumer goods and high-tech sectors. Also Read BMC prolongs tender deadline for 5-km Dahisar-Bhayander elevated road World’s first digital real estate exchange launched by ALT Realtech

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