Analysts forecast traffic growth but scant profits for Indian airlines

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By Bryan Corliss

Oct. 17, 2022 © Leeham News: After sustaining major losses in their most-recent fiscal years, India’s airlines will recover in 2022. But rising fuel and labor costs, plus weak prospects for financing will constrain near-term growth.

That’s the analysis of Aairavat Transport & Technology Ventures consulting firm.

An IndiGo Airlines A320Neo on the runway at Mumbai. IndiGo is India's largest airline. Photo by Timothy A. Gonsalves.

AT-TV’s assessment is less bullish than Boeing’s market outlook, which projects Indian airlines to add 25% capacity over the next year, with long-term growth targeted for 7%. Airbus is slightly more cautious, projecting 6.2% annual growth over the next two decades.

India is one of the world’s largest aviation markets. It’s also been one of the most challenging, with bankruptcies and constant financial distress plaguing the industry.

Summary
  • India airlines have been in upheaval
  • Tata Group wants new aircraft for Air India
  • Indian airlines sustained major losses last year
  • OEMs see long-term growth, but near-term outlook is choppy

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