Air passenger traffic accelerates – Thanks to increased demand for air travel, enhanced airport infrastructure

The Indian airline industry is anticipated to significantly reduce its net losses to Rs 3,000-5,000 crore in the current fiscal year, down from an estimated Rs 17,000-17,500 crore in FY2023. This positive outlook is attributed to improved yields and a stable cost environment, as stated by credit ratings agency ICRA.

ICRA also projects a growth of 8-13 per cent in domestic air passenger traffic for both FY2024 and FY2025. The agency maintains a stable outlook for the industry, considering healthy passenger traffic growth, improved yields, and a stable cost environment.