Communicate To Collaborate
24 in India

India Soars to Third-Largest Domestic Aviation Market Globally

2 weeks ago
thedialog
9
India Soars to Third-Largest Domestic

Photo: Pexels.com

 

India has ascended to become the world’s third-largest domestic aviation market, surpassing Brazil and trailing only the U.S. and China.

This significant milestone is attributed to a surge in air passengers and the expansion of fleets by major airlines such as IndiGo and Air India.

 

Fleet Expansion and Market Growth

Data from aviation analytics firm Official Airline Guide (OAG) reveals that India’s domestic airline capacity has seen a dramatic increase over the past decade. The capacity doubled from 7.9 million seats in April 2014 to 15.5 million in April 2024.

This surge has pushed India ahead of Brazil, which now ranks fourth with 9.7 million seats, followed by Indonesia at 9.2 million seats.

 

Leading in Capacity Growth

Among the top five aviation markets, India posted the highest annual average capacity growth rate of 6.9% over the last decade.

China followed with a growth rate of 6.3%, while the U.S. recorded a 2.4% increase. This robust growth underscores the dynamic expansion of India’s aviation sector.

 

Dominance of Low-Cost Carriers

IndiGo and Air India, which collectively have more than 1,000 planes on order, dominate the Indian market, accounting for nine out of ten domestic seats. The shift towards low-cost carriers (LCCs) has been particularly pronounced in India.

As of April 2024, LCCs comprised 78.4% of Indian domestic capacity. This is significantly higher compared to Indonesia’s 68.4%, Brazil’s 62.4%, the U.S.’s 36.7%, and China’s 13.2%.

 

India’s aviation market is witnessing unprecedented growth, fueled by a strong economy, increased air travel demand, and strategic expansions by key airlines. As the country continues to climb the ranks, it sets a precedent in the global aviation industry, highlighting the critical role of low-cost carriers in driving market growth.