Losses for India’s airline industry are expected to widen to USD 400 million to USD 600 million in fiscal 2025 as higher costs outweigh a rise in passenger demand, a top aviation consultancy said on Wednesday.
CAPA India estimated losses for fiscal 2024 at USD 300 million to USD 400 million and said it sees yields – the average amount paid by a passenger to fly one for kilometre – for the current year rising around 1 percent.
Overall airline costs are expected to rise 3.8 percent in the fiscal year 2025, the consultancy added.
Despite infrastructure limitations, India is currently the world’s fastest-growing aviation market with demand surpassing the supply of jets.
Vistara is “nimble enough to make course corrections and humble enough…,” he said. On the merger, Kannan said the people fitment process for staff, who are not in the operations side, is expected to be completed by month end or next month. The merger is awaiting approval from the National Company Law Tribunal (NCLT).
India’s skies are dominated by low-cost carrier IndiGo , which holds a 60 percent market share. The Air India group, which houses two budget carriers and two full-service carriers in Air India and Vistara, have a roughly 30 percent share. Newer low-cost carrier Akasa Air, and SpiceJet are the other major airlines.
CAPA India estimated domestic passenger traffic to grow to 161 million to 164 million from about 154 million. The consultancy sees international traffic growing to 75 million to 78 million.
