India’s aviation sector continues to show remarkable growth, with both domestic and international air traffic experiencing significant increases in January 2025.
Domestic air passenger traffic in India reached 150.3 lakh in January 2025, representing a strong 14.5% year-on-year (YoY) growth and an impressive 17.9% increase over pre-COVID levels in January 2020.
This growth reflects the continued recovery and increasing demand for air travel across the country.
For the first 10 months of FY25 (April 2024 to January 2025), cumulative domestic passenger traffic stood at 1,372.1 lakh, showing a 7.5% YoY increase and a 13% rise compared to the same period in FY20.
Indian carriers have also seen robust growth in international air traffic, handling 248.9 lakh passengers in the first nine months of FY25.
This marks a 14.5% YoY increase and a significant 41.7% rise compared to pre-COVID levels, underscoring the sector’s strong recovery and the increased confidence of travelers in air travel.
This growth highlights the expanding global reach of Indian carriers and the resurgence of international travel post-pandemic.
To accommodate the growing passenger demand, airlines increased their capacity by 10.8% in January 2025 compared to the same month in the previous year.
While capacity was slightly lower by 1.2% than December 2024, the overall demand remained strong, with airlines achieving a 92.1% passenger load factor in January 2025, up from 89.2% in January 2024.
This indicates efficient capacity utilization and solid demand for air travel.
Aviation Turbine Fuel (ATF) prices provided some relief to airlines, dropping 14.7% YoY from August 2024 to February 2025.
This drop helped reduce operational costs, further supporting the aviation sector’s recovery.
With increased passenger traffic and operational improvements, India’s aviation sector continues to recover and shows promising growth for the months ahead.
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