India will become the most exciting civil aviation market on a global level due to robust government investments in airport infrastructure, said Willie Walsh, director general of the International Air Transport Association (IATA).
Walsh said, “I think India is the market for the future. I will be very optimistic about its growth. Potential growth in India is going to make it a very exciting market.”
IATA, which has over 300 airlines as members, stated that airline revenues globally will rise in 2024 as the sector witnesses continued growth in post-pandemic travel. It stated that in 2023, airlines turned profitable with estimated net profits of $23.3 billion and margins of 2.6 per cent.
According to the IATA, the profits are expected to reach $25.7 billion and margins of 2.7 per cent. It further stated that airline operating profits will reach $49.3 billion in 2024 from $40.7 billion this year. In 2024, total revenues of airlines are estimated to grow 7.6 per cent to $964 billion.
Andrew Matters, director, policy and economics at IATA, said that this performance will be driven by countries such as India, with domestic performance surpassing international traffic.
He said, “While some of the region’s main domestic markets — China, Australia, and India — recovered quickly from the pandemic, international travel to and from the region was subdued as China only eliminated the last of its international travel restrictions in mid-2023.”
However, Walsh said, the high growth in passenger traffic and revenues will not lead to profitable growth for airlines. He said, “On average, airlines will retain just $5.45 for every passenger carried. That’s about enough to buy a basic grande latte at a London Starbucks.”
