India’s Aviation Sector Soars with Record-Breaking Domestic Air Traffic
In a soaring comeback from the pandemic’s turbulence, India closed December 2023 with its highest-ever domestic air traffic. An impressive 13.8 million passengers took to the skies, surpassing the previous peak of 13.21 million recorded in May. This marked a notable 8.4% surge over December 2022 and a 6.1% leap over December 2019’s figures, even with a slightly lower number of flights. Such a feat testifies to the resilience and resurgence of India’s aviation industry, despite the adversities it faced.
Recovery Amidst Operational Challenges
2023 witnessed a series of setbacks for India’s aviation sector. Financial hardships led to a shrinking active fleet with SpiceJet experiencing monetary woes, the shut down of Go FIRST, and the grounding of IndiGo’s aircraft due to engine issues. Despite these hurdles, December’s record-breaking traffic was possible due to a strategic wet-leasing of aircraft by IndiGo and a timely capacity addition by the Tata group. Adverse weather conditions did cause some operational disruptions, but the traffic proved to be resilient.
Driving Factors and Future Projections
Several factors were key to this traffic surge. A conducive economic climate, attractive selective sale fares, and the year-end holiday travel combined to propel the numbers skyward. The record-breaking performance in 2023 sets a promising precedent for 2024. Predictions point towards a potential 15% increase in domestic traffic, translating to up to 17.5 million passengers. It seems India’s aviation sector is set to soar higher.
Air India’s New Addition and Challenges Ahead
Adding to the optimism, Air India is set to introduce its new Airbus A350 into commercial service on January 22. This aircraft, the first of its kind in India, will initially serve domestic routes before embarking on longer-haul flights. This addition is part of Air India’s record-setting 470 aircraft order, promising the arrival of a new plane every six days throughout 2024. However, the industry’s ascent is not without challenges. IndiGo might have to ground more planes due to ongoing engine issues, and the threat of new COVID variants looms large. The quarter’s profitability will serve as a crucial indicator of the industry’s health in the time ahead.
