In 2024, the aviation industry in India is experiencing significant growth and development:
- Domestic air traffic has surged, with a notable 12% increase in November24 compared to the previous month and a 6% rise from Nov23. The daily volume now exceeds 500,000 domestic passengers and 100,000 international passengers, despite capacity limitations and so-called higher fares.
- Market leader IndiGo has introduced, ‘IndiGo Stretch’ business class and loyalty program, alongside ordering widebody A350 aircraft. The airline is targeting premium traffic and challenging the Air India group’s dominance in long haul and business traffic markets.
- IndiGo has achieved remarkable milestones, ranking 3rd in market capitalization globally and 7th in ASKM deployments. The airline reported profits of close to 8200 crores for FY24, a first in India’s aviation history.
- Vistara has merged entirely with Air India, strengthening the Air India group. Air India is expanding its fleet with new aircraft orders, including A350s, B737s, and A320/321neos, to compete with market leaders.
- SpiceJet secured additional funding of INR 3000 crores, aiding its growth potential. Akasa Air is seeking additional funding to expand despite losses. Regional airlines like Alliance Air, Fly91, and fly big are focusing on new routes and airports.
- The industry is embracing direct distribution and new technologies to enhance customer experience and reduce costs. The growth potential is evident as online travel agencies opt for public listings.
– India now operates 157 airports with ongoing development projects. Infrastructure enhancements at existing airports aim to boost capacity and customer services, while new airports in Delhi (DEL) and Mumbai (BOM) will alleviate congestion and offer more flight options. - With stable pricing and growth trends, the Indian aviation sector is reflecting signs of maturity. Projected GDP growth of over 6.5% and traffic growth of 10-12% in 2025 indicate a promising future.

Sanjay Kumar is a senior aviation professional, with decades of experience with Indigo. He has been the CEO of Air Asia, is presently consulting with the low cost airline of Saudia