India is now the world’s third-largest aviation market, according to a new report by the International Air Transport Association (IATA).

The country recorded 174 million passengers in 2024, accounting for 4.2% of global air traffic – behind only the United States and China. Passenger volumes have more than doubled over the past decade, with IATA projecting traffic will triple to 425 million annually by 2044.

The report outlines five key trends shaping India’s aviation ascent:

From take-off to GDP liftoff

In 2023, aviation contributed US$53.6 billion to India’s GDP and supported 7.7 million jobs. This includes employment in airlines, airports, tourism, trade and logistics.

Homegrown demand is sky-high

Domestic travel made up nearly 80% of the total, with 136 million passengers in 2024. IndiGo operated over half of these flights. Between 2011 and 2024, domestic traffic grew 2.4 times.

India stamps its passport

International traffic surpassed pre-Covid levels in late 2024, up 20% from 2019. The UAE led all international destinations with 7.6 million passengers, followed by the US with 3.5 million. New long-haul connections to North America and Africa are expected to enhance economic links.

Budget carriers soar

Low-cost carriers now account for 71% of scheduled seat capacity, up from 51% in 2014. IndiGo holds a 53.4% market share, trailed by Air India and Air India Express. Inflation-adjusted fares have dropped 21% domestically and 38% internationally since 2011.

Fleet gets younger, orders pile up

India’s commercial fleet has doubled in 10 years, now totalling 860 aircraft with an average age of 7.3 years – compared to the global average of 14.8. Indian airlines have 739 new aircraft on order.