India’s air segment exited 2024 with solid fundamentals; demand remained firm and pricing power improved, supporting higher yields and better revenue quality. Total passenger revenue climbed around 9% to $18.3 billion according to Phocuswright’s latest research report India Travel Market Essentials 2025. Domestic volume reached 161 million passengers in 2024, while Indian carriers flew 30 million passengers on international routes—placing total Indian-carrier traffic comfortably above 190 million for the year. India has now emerged as the world’s third-largest aviation market by passenger traffic.
The capacity and infrastructure runway is equally clear. India’s in-service fleet stood at 855 aircraft as of March 2025, with more than 1,600 pending deliveries over the next decade on the back of blockbuster orders. Delhi’s Indira Gandhi International Airport (IGIA) has entered the 100-million-plus club with 109 million annual capacity, and the national airport network has expanded to 162 operational airports, with government plans to scale toward 350 by 2047. India’s fleet skews young and fuel-efficient—7.3 years average age versus the 14.8 year global average—supporting unit cost and sustainability objectives.
On strategy, market leaders are repositioning. IndiGo is pairing international expansion with product upgrades: IndiGoStretch, the carrier’s business product, debuted on key domestic business routes and is now moving onto international flights. Its BluChip loyalty program already has close to 3 million members, while new A350 orders signal a deeper long-haul push. Air India completed its merger with Vistara on November 12, 2024, consolidating the full-service segment and continuing a multi-year fleet renewal. SpiceJet is pursuing recapitalization and fleet restoration to stabilize operations. Among new entrants, FLY91 launched commercial service in March 2024 under the regional-connectivity rubric, while Air Kerala and Al Hind Air are each advancing toward certification/launch milestones to tap Kerala-Gulf and regional demand.
Near-term risks remain elevated. The April 2025 Kashmir attack triggered large-scale cancellations and fare waivers, while subsequent cross-border tensions with Pakistan forced diversions and temporary airspace constraints. The June 2025 Air India crash spiked safety-related concerns. A vigorous monsoon season has periodically disrupted operations in several states, and new U.S. tariff actions in 2025 have dented corporate sentiment, a bellwether for premium/business travel. Offsetting this, direct connectivity keeps improving: both Indian and foreign carriers have been adding Middle East and Southeast Asia links, and India-China direct flights are set to restart after a five-year freeze—incrementally supportive for international flows. India’s aviation sector remains dynamic, capacity-constrained in pockets and strategically important to watch in the medium term.
This Market Essentials publication provides need-to-know information on the India travel market, including key developments and trends, sizing and projections through 2028. For data and analysis on the broader APAC travel market, with coverage of major segments and countries, check out the Asia Pacific Travel Market Report 2025 series.
Phocuswright powers the travel industry’s smartest decisions. Our in-depth insights and analysis give you the confidence to act decisively, stay ahead of the curve, and outperform the competition.
Get the most out of our insights with an Open Access subscription. Explore how it can propel your business.
