India's air passenger traffic projected to grow 7%

India's air passenger traffic is expected to grow by 7% in 2025. This rise is largely attributed to a growing middle class and more affordable travel options. The demand for air travel is boosting aviation development across the country. Joshua Ng, from Alton Aviation Consultancy, noted that India contributes around 10% of the air traffic in the Asia Pacific region. The country has already returned to pre-pandemic travel levels. This ongoing demand supports major projects, including the creation of 150 new airports. Ng also highlighted that Indian airlines have nearly 1,900 aircraft on order. The recent merger of Air India and Vistara is likely to enhance industry stability, with Air India and IndiGo dominating the full-service and low-cost markets, respectively. Globally, air traffic has returned to pre-pandemic levels. The aviation industry is projected to grow by about 4% annually from 2024 to 2034. This growth is fueled by a projected 2.7% annual increase in global GDP. The Asia-Pacific region is expected to see the most growth, primarily driven by demand from China and India. However, challenges remain for the aviation sector. Ng warned about risks such as stabilizing prices, inflation, and geopolitical tensions. Issues like supply chain disruptions and labor shortages, left over from COVID-19, also persist. Airlines will need to focus on maximizing aircraft efficiency, such as reducing turnaround times. Some may even consider leasing additional aircraft to meet demand, though this will depend on the economics of specific routes. Addressing these challenges is crucial for stakeholders in the aviation industry in the coming years.