“Fleet efficiency and smart deployment defined India’s Airline growth in 2025,” says Jaideep Mirchandani

The Group Chairman of Sky One adds that the strongest performers were airlines that focused on smart fleet utilisation rather than fleet size

The latest World Air Transport Statistics report released by the International Air Transport Association (IATA) in August states that India became the world’s fifth largest air passenger market in 2024, handling 211 million travellers, an 11.1 per cent increase over the previous year. The report highlights India’s rapid growth in both domestic and international aviation, placing it ahead of several traditional markets and just behind the United States, China, the United Kingdom and Spain.

As India strengthened its position as one of the fastest growing aviation hubs, 2025 brought several important developments. One key change was the acceleration of fleet renewal programmes among Indian airlines to keep pace with this growth. Rather than simply adding more aircraft, carriers focused on modernising existing fleets and retiring older models to improve efficiency and service quality.

“This aligns with global trends showing a rise in premium class travel. The Asia Pacific region continues to lead the world’s busiest air routes. Accordingly, several major Indian airlines have upgraded nearly half of their narrow body fleets with redesigned interiors, improved seating and modern inflight entertainment. These retrofit programmes aim to provide greater passenger comfort while improving cost efficiency through better fuel use, extended range and lower maintenance needs,” said Jaideep Mirchandani, Group Chairman of Sky One.

Another major trend has been the reshaping of international strategies by Indian airlines. Major carriers such as IndiGo, Air India and Akasa Air have started using long range single aisle aircraft on routes that were previously served by larger jets.

“This approach has allowed them to expand their international network while reducing operating costs and adopting a flexible hybrid model. More airlines are expected to follow this path in the coming years, using a mix of narrow body and wide body aircraft. The hybrid model will continue to define fleet utilisation in a large market like India. While narrow body planes offer cost efficiency and better capacity balance, wide body jets remain essential for passenger comfort, long haul routes and cargo operations, as most freight is carried in their belly space,” said Mr Mirchandani.

The year’s strongest performers were airlines that prioritised effective fleet utilisation over fleet size. Moving away from a fully leased model, several carriers adopted a hybrid approach that combines leased and owned aircraft. “This strategy helps balance financial risk and build long term value in a competitive market. It is expected to play an even greater role in shaping India’s aviation sector,” he added. 

Mr Mirchandani concluded that these developments will influence how airlines plan network expansion and align with sustainability goals. Fuel efficient narrow body aircraft are set to remain the backbone of regional and mid haul growth, while airlines are likely to focus on high yield, point to point international routes for selective expansion.