India’s domestic Air Traffic projected to reach 164 million by FY’25

India’s domestic air traffic is expected to rise by 6 to 8 percent, reaching 161 to 164 million passengers in the current financial year, according to a report by aviation advisory firm CAPA India.

The report also projects a significant increase in international air traffic, which is expected to jump 9 to 11 percent, totaling 75 to 78 million passengers by the end of March 2025. Despite the growth in passenger numbers, domestic carriers are projected to report consolidated losses ranging from USD 0.4 to 0.6 billion this financial year.

Excluding the profitable IndiGo, the estimated losses for the industry could be between USD 1.3 to 1.5 billion. A key factor contributing to these losses is the capacity shortage caused by grounded aircraft. Currently, around 130 planes are grounded for various reasons.

This number is expected to rise to approximately 180, including the aircraft from Go First, which ceased operations last year. CAPA India reports that net fleet inductions are expected to be 84, bringing the total number of planes in service with domestic carriers to 812 by the end of March 2025, up from 728 last fiscal year.