Fueled by significant growth in the aviation sector over the past decade, India has become the third-largest domestic airline market globally, up from 5th place.
According to Official Airline Guide (OAG) data, India has now overtaken Brazil and Indonesia to become the third-largest domestic market, with an airline capacity of 15.6 million seats in April 2024 from 7.9 million in April 2014.
A decade ago, India was the smallest market among the top five, with around 8 million seats. Indonesia held the 4th spot, Brazil the 3rd, and the US and China were the top two.
Currently, the US and China continue to lead with 86.1 million and 67.8 million capacities, respectively.
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Over the past decade, India has seen the highest annual growth rate in seat capacity among the top five countries, averaging 6.9%. China follows at 6.3%, the US at 2.4%, Indonesia at 1.1%, and Brazil experiencing a decline of 0.8% annually.
According to OAG, India has witnessed the most significant shift to low-cost carriers (LCCs) among the top five countries.
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As of April 2024, LCCs represented 78.4% of India’s domestic capacity, followed by Indonesia at 68.4%, Brazil at 62.4%, the US at 36.7%, and China at 13.2%.
According to ch-aviation, IndiGo’s order of 982 planes consists of 96% narrow-bodied aircraft, while Air India’s 447-plane order comprises 74% narrow-bodied aircraft.
IndiGo and Air India both are preparing for considerable international growth. OAG predicts that these airlines’ large orders for narrow-bodied aircraft will also help to increase domestic capacity.
Under Prime Minister Narendra Modi’s leadership, India has experienced remarkable growth, setting the stage for shaping the aviation industry’s future over the next 25 years.
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As per the Civil Aviation Ministry, on November 19, 2023, airlines in India carried 456,910 domestic passengers, the highest since the pandemic began, surpassing pre-COVID averages by 7.4%.
According to the government, there has been an increase in the number of airports from 74 to 157 over the last decade.
In 2023, over 9.1 million passengers utilized Digi Yatra, with the app being downloaded by more than 3.5 million users.
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