Monday, May 20, 2024 India’s airline industry is set for explosive growth, driven by a surge in travel demand and a booming population, with massive aircraft orders from top carriers. India is poised to become a powerhouse in the airline industry, fueled by the growing eagerness of its population to travel and its increasing population, according to a report by Netherlands-based ING Bank NV. The report highlights India’s potential to achieve strong structural growth, with airlines such as Indigo and Air India placing historically large orders for new aircraft to prepare for this anticipated demand.
The report, which examines the global aviation sector’s future, notes that the long-term global growth outlook over the next 20 years has generally been reduced to an annual range of 3-4 percent, down from 5-6 percent, particularly in the post-pandemic era. Europe is expected to see the lowest growth figures. One major factor contributing to this tempered growth is the rising cost of emissions, which is expected to make flying significantly more expensive.
Domestic travel within large countries has been the first to recover, with average levels already reaching pre-pandemic figures last year. However, the report points out regional differences, noting that traffic figures in the US and China started 2024 surpassing pre-pandemic levels. The India Aviation Market is projected to grow significantly, with an estimated market size of USD 13.
89 billion in 2024, expected to reach US.
