Indian airlines Oct-Dec overseas traffic up 22% on year

NEW DELHI :Domestic carriers registered a 22% increase in international air traffic to and from India at 7.7 million passengers, as per the latest data available for the October-December period, the fruits of a likely sustained post-pandemic focus by Indian airlines to expand their international network.

As per data from the regulator Directorate General of Civil Aviation, Indian airlines also registered an increase in the cumulative market share of international flights to and from India at 44.6% in the period. Their share was 43.5% seen in the same quarter a year ago for a total of 6.3 million passengers.

For the entire calendar year 2023, domestic carriers garnered a market share of 44.4% by transporting 28.4 million international passengers, a sharp increase from 38% recorded in pre-pandemic 2019 when the passenger count was around 24.2 million.

Scheduled international flight operations resumed in India in March 2022 after a two-year shutdown due to the covid pandemic.

Another sign of a bounce-back is that while the total international traffic for 2023 – for both international and domestic carriers – is still 0.5% lower at 63.9 million passengers than the 2019 figure of 64.2 million, the Indian airlines have outpaced their pre-pandemic levels of international air traffic.

Domestic carriers registered a growth of 17% in the number of passengers they carried on international flights during 2023 while the total overseas traffic carried by foreign carriers is still 11% lower at 35.5 million passengers than the 2019 levels of 40 million passengers.

For the Oct-Dec period, India’s largest airline IndiGo held a market share of 18.2% as compared with 15.6% a year ago. The Tata Group-backed Air India and Air India Express held 12.8% and 7.1% as compared with 12.5% and 6.9% respectively in the same period a year ago. The market share of Vistara, a joint venture of Tata Sons and Singapore Airlines, rose to 3.6% from 2.6% earlier while that of low-cost carrier SpiceJet dipped to 2.8% from 3.5%.

Among international carriers, the UAE’s Emirates flew 1.39 million passengers in the December quarter as compared with 1.38 million a year ago, its market share dipping to 8.1% from 9.5%. Singapore Airlines, registered na 8% increase in passengers carried at 623,968 passengers, but its market share fell to 3.6% as compared to 4% a year ago on a higher base.

Doha-based Qatar Airlines, which carried 544,125 passengers as compared to 474,257 passengers earlier, held a market share of 3.1% as compared to 3.3% a year ago. Etihad held a market share of 2.8% as compared to 2.4% earlier and it carried 483,033 passengers, 36% up on year. Air Arabia saw a decline in its market share to 2.6% from 3.1% earlier and flew 455,318 passengers, 0.7% up on year.

In terms of passengers carried, IndiGo flew 3.1 million passengers to and from India, registering an increase of 39% on year and full-service carrier Vistara recorded a 70% growth on-year by flying 630,427 passengers in the quarter. Air India and its subsidiary Air India Express carried 2.2 million and 1.2 million passengers respectively, registering a growth of around 22% each as compared to the same period a year ago.

The latest data for domestic carriers chimes in with the plans of Indian airlines. IndiGo, which operates a fleet of more than 360 aircraft, plans to allocate at least 30% of its available capacity to international networks. The airline, which currently connects destinations in the range of 5-6 hours with its A320 family aircraft, has further plans to connect destinations beyond in mid-long haul markets with A321 XLR (extra long range) aircraft which will join its fleet from 2025.

In a recent presentation to analysts, IndiGo said there is compelling opportunity to expand its international footprint through large airports including Delhi, Mumbai, Hyderabad, Kolkata and Bengaluru.

Full-service carrier Air India, which ordered 470 aircraft in Feb 2023 including 70 wide-body planes, also intends to launch non-stop long-haul flights with the new fleet.

“The international opportunity is staring everyone in the face. In (some hubs) cases, upwards of 70-90% of people are not going to that place. They are going through that place. I think if we get the basics right, be credible, we are going to get the time-sensitive, the discerning, the premium traveller who values the experience that we are going to provide,” Air India Chief Executive Officer and Managing Director Campbell Wilson said earlier this week.

India’s youngest airline Akasa Air will commence international flights in March with flights from Mumbai to Doha. The carrier has plans to connect Riyadh, Jeddah, Bahrain among others in the year ahead.

Ratings agency ICRA expects the international passenger traffic for Indian carriers to reach 25-27 million in the current fiscal year and 27-29 million passengers in the next.

“The ability of Indian carriers to garner higher share in international routes will depend upon the route offering by the Indian carriers in the sought after routes, availability of requisite wide-body fleet, which is generally preferred for long-haul flights, and adequate code-share/partnership with foreign airlines to service far-off and underserved destinations,” said Suprio Banerjee, vice president and sector head – corporate ratings, ICRA.