India's Aviation Market Leads Global Traffic Recovery Post-Pandemic: ICRA Report

The Indian airport sector has demonstrated a significantly quicker recovery in passenger traffic post-Covid pandemic compared to its global counterparts, as per a recent report by research and ratings agency ICRA.

This robust recovery is attributed to strong economic growth and the addition of new airport routes, positioning Indian air passenger traffic to outperform global trends.

"Global passenger traffic recovered to 96 per cent of pre-Covid levels in CY2023, whereas Indian airport passenger traffic soared to 106 per cent," stated Vinay Kumar G, Vice President & Sector Head, Corporate Ratings, ICRA.

In 2023, Indian airports accounted for 4.2 per cent of global passenger traffic, an increase from 3.8 per cent in 2019. The country’s largest airport, GMR-operated Delhi International Airport, recorded a 105 per cent recovery in traffic over pre-pandemic levels.

In contrast, Atlanta Airport, one of the world’s busiest, recorded a 95 per cent recovery.

In March, Delhi International Airport further cemented its status as a major global hub when Prime Minister Narendra Modi inaugurated its expanded integrated Terminal 1, officially making it a 100-million capacity airport, reports Economic Times.

As per ICRA report, India’s air passenger traffic is projected to witness healthy growth of around 8-11 per cent year-on-year (YoY), reaching approximately 407-418 million passengers in FY2025.

This growth will be driven by a strong rebound in both leisure and business travel, enhanced connectivity to new domestic destinations, and a continued increase in international travel.

Passenger traffic in FY2024 had already reached 376.4 million, marking a 15 per cent YoY increase and surpassing pre-Covid levels by 10 per cent. This impressive recovery highlights the resilience and growth potential of the Indian aviation sector in the post-pandemic era.