India’s air passenger traffic is projected to grow by 7% in 2025 due to a rising middle class and affordability. The aviation sector has returned to pre-pandemic levels, with significant development initiatives and aircraft orders supporting this growth. However, challenges from supply chain issues and labor shortages persist, requiring careful management by industry stakeholders.

India’s air passenger traffic is projected to experience a 7% increase in 2025, attributed to the expanding middle class and enhanced affordability of air travel. Joshua Ng, Director of Alton Aviation Consultancy, shared this forecast, highlighting that India currently represents approximately 10% of the Asia-Pacific air traffic demand, which has returned to pre-pandemic levels.

Ng expressed optimism regarding the aviation sector in India, noting that the rising demand is reinforcing substantial aviation development initiatives, including the establishment of 150 new airports nationwide. He emphasized, “India’s passenger traffic is expected to grow at a strong pace of 7 per cent in 2025, supported by an order book of nearly 1,900 aircraft among airlines based in the country.”

He further mentioned the recent merger of Air India and Vistara, projecting that it will stabilize the industry and position Air India and IndiGo as key players in their respective market segments. Ng provided a global context, stating that global air traffic has rebounded to pre-pandemic levels, with a forecasted long-term growth trend of 4% annually from 2024 to 2034, driven by a 2.7% annual increase in global GDP.

According to Ng, the Asia-Pacific region is expected to be the largest air travel market, with an estimated growth rate of 5.1% per year primarily due to rising demand from both China and India. He presented data from Alton’s report, which noted that the backlog for A320neo aircraft stands at 7,216 orders, equating to a 9.7-year delivery backlog based on a 10-year average production rate of 741 units per annum.

Despite the optimistic outlook for the aviation industry, Ng pointed out potential risks, including normalizing yields, inflation, and geopolitical pressures. Notably, persistent challenges such as supply chain issues and labor shortages resulting from the COVID-19 pandemic will require attention. Airlines are urged to focus on optimizing aircraft utilization through strategies, such as reducing turnaround times and considering wet-leasing options, contingent upon route profitability.

In summary, India’s air passenger traffic is anticipated to grow by 7% in 2025, reflecting robust demand supported by a recovering economy and strategic industry developments. The projection underscores the importance of addressing ongoing challenges in the aviation sector while capitalizing on growth opportunities.

Original Source: www.business-standard.com

Related posts:

HAL Commits to Accelerated Warplane Deliveries Following Military Concerns India’s Fighter Jet Acquisition Dilemma Amid U.S. Pressures and Strategic Needs AviLease Delivers Airbus A320neos to SDH Wings, Strengthening Partnership China’s J-36 Stealth Fighter: A Leap Forward in Sixth-Generation Aviation