India projected to see domestic air passenger traffic of 155 mn in FY24

India is projected to see a domestic air passenger traffic of around 155 million in the current financial year while the number of grounded aircraft of the domestic carriers is expected to be around 200, according to a report released on Monday.

Aviation advisory firm CAPA India said the international air passenger traffic is anticipated to be about 70 million in the year ending March 2024.

"Domestic air traffic in FY2024 has remained above FY2020 levels in every month to date, although the strength of recovery has eased in the last couple of months.

"Since May 2023, international traffic has remained largely in line with FY2020 but is expected to move ahead in the remainder of the year," it said.

In its March report, CAPA India had estimated domestic air passenger traffic at more than 160 million and international air passenger traffic at 72-75 million.

As per the report, overall industry profitability is expected to be largely in line with our initial guidance of a loss of USD 1.6-1.8 billion, of which full-service carriers are expected to account for USD 1.4-1.5 billion and low-cost carriers at USD 200-300 million.

"Despite having a very challenging FY2024 from an operational perspective due to the Pratt & Whitney engine issues, IndiGo is expected to post a record profit of USD 500 million and will see its cash balances increase by USD 1.2+ billion," the report said.

At the end of March 2024, airlines are projected to have an operational fleet of 588 planes.

The report noted that close to 200 planes are expected to remain grounded as of March 31, 2024, and more than 90 of them will be that of IndiGo.

Air India is projected to have 25-30 grounded planes while SpiceJet's number of grounded aircraft will be around 27, it said.

Currently, there are 161-166 planes of IndiGo, Air India, Go First and SpiceJet that are on the ground.

"The number of fleet on the register at the end of FY2024 is expected to be close to 790 aircraft, an increase of around 100 during the year, of which the Air India Group accounts for 60+ aircraft," the report said.