India rises to third in global domestic airline market

India's domestic airline capacity has doubled in ten years, from 7.9 million in April 2014 to 15.5 million in April 2024

June 20, 2024

The United States and China still lead, with 86.1 million and 67.8 million seats, respectively

India's domestic capacity growth rate is the highest among the top five countries, averaging 6.9% annually

Low-cost carriers (LCCs) dominate the Indian market, accounting for 78.4% of domestic capacity in April 2024

IndiGo has significantly driven this growth, increasing its market share from 32% to 62% in the last decade

According to an analysis based on OAG data, India has emerged as the third-largest domestic airline market in the world, advancing from the fifth position it held a decade ago. The country’s domestic airline capacity has remarkably increased, doubling from 7.9 million in April 2014 to 15.5 million in April 2024. This growth has pushed Brazil and Indonesia to the fourth and fifth positions, with capacities of 9.7 million and 9.2 million, respectively.

While the United States and China maintain the top two spots with 86.1 million and 67.8 million seats, India’s growth rate of 6.9% annually is the highest among the top five countries. In comparison, China’s rate is 6.3%, the US is at 2.4%, Indonesia is at 1.1%, and Brazil has seen a decline of 0.8%.

The transition to low-cost carriers (LCCs) has been particularly significant in India, where LCCs accounted for 78.4% of domestic capacity in April 2024. This is the highest percentage among the top five markets, with Indonesia following at 68.4%, Brazil at 62.4%, the US at 36.7%, and China at 13.2%.

IndiGo has played a crucial role in this expansion, with its market share nearly doubling from 32% to 62% over the past decade. While the rest of the market’s seat growth averaged 0.7% annually, IndiGo’s domestic capacity grew at an impressive 13.9% yearly. IndiGo and Air India are now focusing on international expansion, but their substantial narrow-bodied aircraft orders will also boost domestic capacity.

Despite this growth, a challenge remains as to whether India can accommodate the rising demand with its current infrastructure. India has 119 airports offering domestic flights, compared to 250 in China and 656 in the US. IndiGo projects that domestic passengers will double from 155 million in 2024 to 350 million by 2030.

Source: Business Standard

Recent Articles

IMF raises India’s FY25 growth projection to 7%

July 17, 2024

The International Monetary Fund (IMF) has raised India’s growth projection …

Read More

FM Sitharaman gears up for historic budget presentation

July 17, 2024

As the Budget presentation date inches closer, the final stage …

Read More

Government to launch AgriSURE to boost agricultural start-ups

July 15, 2024

The Government, in a strong commitment to the agricultural sector, …

Read More