On Monday, May 6, Crisil's statement suggested that Indian air carriers are likely to significantly boost their share in the international passenger traffic within India. The report predicts a notable increase, propelled by factors like expanded fleet capacity, the introduction of new routes, and direct flights to key destinations.

Manish Gupta, Senior Director and Deputy Chief Ratings Officer at CRISIL Ratings, highlighted a significant shift in spending patterns since the pandemic.suggesting a rising preference for overseas leisure trips. The report emphasizes that Indian airlines benefit from a competitive edge over foreign carriers due to their comprehensive domestic network connectivity and the ability to provide seamless international connections on a single ticket to passengers from smaller cities categorized as Tier 2 and Tier 3.

As international air travel in India bounces back from the effects of the pandemic, it is anticipated to reach around 70 million passengers by fiscal year 2024 Having dropped to 10 million in fiscal year 2021, Indian airlines are now strategically preparing to leverage the upward trajectory in international air travel."The government's emphasis on developing India as a tourism hub is also anticipated to boost inbound traffic." 

He noted that increased disposable incomes, more lenient visa policies, airport expansion, and improved air travel connections are driving the growth of international travel.

Indian airlines have taken proactive measures to expand their international route networks, incorporating 55 new routes within the last 15 months alone. Indian airlines are expected to achieve a compound annual growth rate (CAGR) of 14-15% in the international sector over the next four fiscal years, thereby strengthening their position in the market.

Source - Financial Express