International travel to and from India experienced a slight 1.2% decline in the first quarter, with 1.91 crore passengers compared to 1.93 crore a year earlier. However, the impact on airlines was significantly different.

Indian carriers, including IndiGo and Air India, saw their passenger traffic fall by nearly 10%, carrying 80.9 lakh people, down from 89.6 lakh in the same period.

Foreign Airlines Boost Passenger Numbers

In contrast, foreign airlines reported a strong 6% rise in passenger numbers, transporting 1.1 crore travelers compared to 1.03 crore in the previous year. Major Gulf carriers like Emirates and Qatar Airways faced challenges in March due to the regional conflict, creating opportunities for other international airlines. Carriers such as Lufthansa, British Airways, and SWISS took advantage by increasing capacity and using larger aircraft on routes to India, which directly boosted their passenger figures.

Indian Carriers Face Flight Path Challenges

Indian airlines were unable to fully capitalize on the reduced presence of Gulf airlines. The closure of Pakistani airspace forced them onto significantly longer western routes. This made additional flights uneconomical, especially with high oil prices and a weakening rupee. Extended flight paths increased fuel consumption and necessitated more refueling stops. Air India, the only domestic airline operating wide-body aircraft, has reduced flights amid ongoing losses. IndiGo, which relies on wet-leased wide-body planes, also faces restrictions on overflying Pakistan.

Market Share Shifts in Q1

Combined, Air India and Air India Express carried 45.5 lakh passengers, while IndiGo flew 39.3 lakh passengers in the January-March period. In the most recent quarter, IndiGo (38.2 lakh) narrowly outperformed the Air India Group (37.7 lakh). The full effect of the conflict on air travel patterns is expected to be more evident in the April-June quarter data.