Market share of Indian carriers to fly internationally higher

As per the reports by Credit Rating Information Services of India Limited, the market share of Indian carriers could accumulate to around 50% of the total international passenger carriage market share by the financial year of 2028.

The credit for the same is said to be given to aircraft orders by Air India, Akasa, and IndiGo. In a statement put out by the analytical credit rating agency, it was revealed that “The share of Indian airlines in international passenger traffic originating from, terminating in, or transitioning through India is seen surging 700 basis points to about 50% by fiscal 2028 from 43% in fiscal 2024.” Further explaining the numbers, it was stated that such a grand improvement will be supported by “Indian airlines deploying additional aircraft and adding new routes in the international segment, as well as their inherent advantage of superior domestic connectivity compared with foreign carriers.” The figures also highlight how Indian international travel stood at around 1 crore in FY 2021 but has advanced to a whopping 7 crore in the fiscal year of 2024, with the numbers estimated to only leap up in the coming years.

Manish Gupta, the Ratings’ Senior Director & Deputy Chief Ratings Officer at CRISIL has credited this increase to the “shift in spending patterns” of Indians, especially after COVID-19 when the love for leisure travel increased amongst the masses. The change is also said to be due to various countries welcoming tourists with open arms after the pandemic, levying more straightforward requirements and procedures in the process.

Indian airlines, thus, are aiming to capture a bigger bite of the international market, which is said to be yielding higher profits than its domestic counterpart. In the last 15 months, the Indian airline sector has added in around 55 new international routes, pushing their tally to cross 300. At such a rate, the sector is expected to face high business and business.