India’s Aviation Industry to Add 150 New Planes in 2024, Says Report
India’s aviation industry is poised for significant growth, with domestic carriers expected to add over 150 new aircraft in 2024, a 37% increase year-on-year, according to a research report by Nuvama. However, the current number of aircraft still falls short of the rapidly rising demand, likely keeping airfares firm in the coming months.
The report noted that passenger traffic has surpassed pre-COVID levels, increasing by 11% compared to FY19. Data from the Ministry of Civil Aviation shows that passenger movement in India, both domestic and international, averages around 32 million passengers per month, highlighting the need for more aircraft in the market.
Available Seat Kilometers (ASKM), a key industry metric measuring an airline’s passenger-carrying capacity, rose by 14% year-on-year and 2% month-on-month in August 2024. IndiGo continues to dominate the domestic aviation market with a 58% share of the domestic ASKM in August 2024, while the Air India group leads the international segment with a 54% market share among Indian airlines.
The report also highlighted that Aviation Turbine Fuel (ATF) prices have seen a sharp decline, down 18% year-on-year and 5% month-on-month in September 2024, driven by falling crude oil prices. This price reduction will be a relief to airlines, potentially offsetting some cost pressures from the ongoing supply-demand imbalance.
India ranks first among the top ten countries with the highest share of low-cost carriers (LCCs) in overall airline capacity.
Doubts Revealed
Aviation Industry -: The aviation industry includes all the companies and activities involved in flying airplanes, like airlines, airports, and airplane manufacturers.
Domestic carriers -: Domestic carriers are airlines that operate flights within the same country. In this case, it means airlines that fly within India.
Aircraft -: Aircraft are vehicles that can fly, like airplanes and helicopters. In this context, it refers to airplanes.
Year-on-year -: Year-on-year means comparing one year to the previous year. For example, comparing the number of airplanes in 2024 to the number in 2023.
Airfares -: Airfares are the prices people pay for airplane tickets.
Passenger traffic -: Passenger traffic refers to the number of people traveling on airplanes.
Pre-COVID levels -: Pre-COVID levels refer to the time before the COVID-19 pandemic, which affected travel and many other activities.
IndiGo -: IndiGo is a popular airline in India that operates many flights within the country.
Air India -: Air India is another major airline in India, known for its international flights.
Aviation Turbine Fuel -: Aviation Turbine Fuel is a special type of fuel used by airplanes to fly.
