What's Driving International Gains For Indian Airlines? – India Report

Indian airlines will account for half of the country’s international passenger traffic by the 2027-28 financial year, according to a report by credit rating agency CRISIL Ratings. That's up from 43% this fiscal year, with India's international passenger traffic at around 70 million.

What's driving the growth? According to Manish Gupta, senior director at CRISIL, there has been a noticeable shift in spending patterns post-Covid. He said there is an increasing inclination of Indians towards international leisure travel. Skift Megatrends also noted that the spending power of the Indian middle class is likely to significantly impact the growth of the global travel industry. 

Gupta said, “Increasing disposable incomes, easing visa requirements, growing number of airports, and enhanced air travel connectivity are boosting international travel. The government’s focus on making India a hub for tourism is also expected to provide a fillip to inbound traffic.” According to him, this is likely to lead the international passenger traffic to annually grow at 10-11% over the next four years versus 5% pre-pandemic. 

How are Indian carriers responding? Speaking at the Skift India Summit, Air India CEO Campbell Wilson said that the