Indian Aviation Rebounds to Profit as Demand Soars

New Delhi,India: Indian airlines and airport operators have swung back to profitability after two challenging years due to the pandemic. The Airports Authority of India (AAI) projects a net profit of ₹1,900 crore for FY23, thanks to increased air traffic and improved performance from major airports in Delhi and Mumbai.

IndiGo, the nation's largest airline, reported record profits, while Vistara broke even for the first time. SpiceJet also saw a surprising fourfold increase in net profit to ₹106.8 crore. This recovery is supported by a significant rise in passenger numbers, with Indian airports handling 267 million passengers from April 2022 to January 2023, marking an 82% increase from the previous year.

In February, the sector witnessed its highest-ever quarterly passenger numbers, with daily domestic air passenger figures surpassing pre-pandemic levels. This surge is attributed to a rebound in corporate travel and major events like the G20 meetings and Aero India show.

AAI, managing over 100 airports, saw its first loss in 25 years during the pandemic but is now expected to pay 30% of its net profit as a dividend to the Union government for FY23. The aviation sector's robust recovery signals a strong return to pre-pandemic operations.