India’s aviation sector has witnessed remarkable growth in recent years, making air travel accessible to most people and leading to a broader inter-city network, thereby fueling economic growth. The domestic air traffic has surged in the country over the years. In the first six months of this year, 79.35 million passengers travelled by flight, which is a 4% increase from the corresponding period in 2023. It is also the highest-ever domestic passenger traffic for six months. Despite all these developments, the Indian aviation industry is facing several challenges, from financial crunch to flight delays, engine failures and lack of adequate staff.

Financial woes

Despite the growth in passenger traffic, many carriers are grappling with a severe financial crunch. Some of the reasons include high operational costs, intense competition, lack of profitable domestic routes and poor management.