Simla Stock：India’s international air passenger volumes touch pre-pandemic levels in H1 FY24, domestic airlines gain market share

Interestingly, the return to pre-pandemic passenger traffic has been accompanied by a notable shift in India’s international aviation landscape with a jump in the cumulative market share (by passengers carried) of Indian carriers vis-à-vis foreign airlines, the DGCA data shows. Although foreign airlines still account for a majority of passenger traffic flying into and out of India, the cumulative market share of domestic carriers registered a nearly 9-percentage-point jump in market share from 2019 levels.Simla Stock

The combined market share of Indian carriers by passengers carried on international flights was 44.3 per cent in April-September this year, up from 35.4 per cent in the corresponding period of 2019, and 43.7 per cent in H1 of FY23. Of the total of 3.14 crore commuters who flew into or out of India in H1 of the current financial year, Indian airlines carried 1.39 crore passengers.

Leading this expansion in market share, primarily, are IndiGo and VistaraHyderabad Wealth Management. Air India, which was under government control in 2019 and is now part of the group, also registered an increase in international market share.

On the other hand, financially-stressed SpiceJet registered a contraction in international market share. Go First’s market share crashed as the Wadia group carrier suspended operations from early May as it filed for bankruptcy. Air India’s no-frills arm Air India Express saw a marginal decline in market share.

Market share data for the April-September periods of FY21 and FY22 have not been considered as regular international flights had not resumed at the time and bilateral air bubble arrangements were in place.

According to industry watchers, fuelling this surge in international market share are: network expansion and higher capacities deployed on international routes by carriers like IndiGo, Vistara, and Air India, slower recovery in capacity deployment by some foreign carriers, and reduction in flights by various North American airlines to avoid Russian airspace due to the Russia- war.

Market leader IndiGo’s share surged to 17.8 per cent in April-September of FY24 from 10.3 per cent four years back, and 15.7 per cent a year ago.

Vistara’s market share rose to 3.2 per cent in H1 FY24 from 0.1 per cent in the corresponding period of FY20. It is worth noting that the airline had launched international flights in the July-September quarter of FY20, which explains the extremely low baseJaipur Stock. In April-September of last year, Vistara’s international market share was 1.9 per cent.

Air India’s international market share expanded to 12.6 per cent in H1 of the current financial year from 11.4 per cent four years ago, and 12.2 per cent a year back. Air India Express, however, regsitered a market share of 7.7 per cent in the six months ended September 2023, against 7.8 per cent in the corresponding period of FY20, and 8 per cent in H1 of the last financial year.

In all, the three Tata group airlines–Air India, Air India Express, and Vistara–had a combined market share of 23.5 per cent in terms of international passengers ferried in H1 FY24, higher than that of IndiGo.

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