Year-end review: Airlines chart on path of recovery in 2022, will pent-up demand drive growth in 2023?, ET TravelWorld News, ET TravelWorld

Rate this post

The Indian aviation sector witnessed a record number of flyers in the second half of 2022, setting the tone for a positive 2023 for the industry. Having said that, the lingering effects of Covid-19, geopolitical issues, rising prices of crude, and continuing supply chain challenges are likely to pose headwinds.Despite the challenges imposed by the pandemic for nearly two years, the aviation industry and air travellers exhibited remarkable resilience. The sector has been witnessing healthy demand especially in the second half of the year. As per recent data released by DGCA, the aviation industry has recorded an annual growth of 52 per cent in November 2022.

Looking ahead to 2023, airlines are looking forward to expanding network both within India and overseas, with new routes and frequencies. In conversation with ET TravelWorld, leading Indian and global airlines – both LCCs and FCCs shared their outlook on business and operations.

2022 has been a year for recovery for us where we wanted to get back to our best for our people and our customers following a bruising pandemic period. We have successfully restarted all the destinations we flew to before covid in the USA. We can expect demand to continue to be buoyant in 2023, with a large volume of pent-up demand from the covid period having still not travelled but having a strong desire to do so. We have had a strong Summer with relatively few travel restrictions, but that one Summer alone is not enough to recapture all the demand that was lost during two years of restrictions, so we can expect continued high demand. This will be particularly true for India, which seems to be bucking the global trend with strong economic growth forecasts,” said a British-carrier Virgin Atlantic’s spokesperson.

Bullish about the Indian market, the spokesperson added that they are seeing strong demand from India and the it is set to continue in 2023 as well. “In India, 2022 was our biggest year ever, with three direct daily services from India to UK (two from Delhi and one from Mumbai) as well as the launch of our codeshare partnership with India’s largest airline, IndiGo. This year we launched direct flights from London to Austin, Texas, and are seeing strong demand from India, with travellers loving the city’s foodie, arts, and music culture,” the spokesperson added.

Country’s largest airline in terms of fleet size and market share, IndiGo said it is seeing strong recovery in both the international and domestic segments, buoyed by festive travel, tourism as well as the return of business travel.

“The Indian aviation sector witnessed a record number of flyers in the second half of 2022, setting the tone for a positive 2023 for the industry. Having said that, the lingering effects of Covid-19, geopolitical issues, rising prices of crude, and continuing supply chain challenges are likely to pose headwinds. Despite this, we are optimistic that the robust demand will continue powering the industry to new heights,” said an IndiGo spokesperson.

IndiGo also introduced a host of technology powered initiatives such as RFID tech and electronic documentation to improve operational efficiencies in 2022.

Whereas, country’s leading full service carrier, Vistara, who also announced its merger with Air India said that 2022 was a landmark year for them where they increased their domestic network significantly.

“In 2022, we had a 46 per cent increase in our domestic network. We launched five new routes (connecting multiple cities in our existing network) and two destinations within India. Our international network grew by three times with four additional routes and three new destinations. Today, we operate more than 270 flights daily with a fleet to 54 aircraft,” mentioned Vistara’s spokesperson in conversation with ET TravelWorld.

Expressing optimism about 2023, the airline’s spokesperson went on to say that their fleet will epand to 70 aircraft by the end of FY2024. “We expect 2023 to remain a strong year for us, with opportunities for growth and expansion. Our focus is to expand our domestic and international footprint with our growing fleet and providing better connectivity and a wider network to our customers.”

With Vietnam emerging as one of the top emerging destinations for Indian travellers in 2022, VietJet has witnessed a remarkable recovery across all international markets, including India, where travel demand increased significantly in 2022.

Vietnam received 27,000 Indian tourists, an increase of 31 per cent compared to previous month and more than 50 per cent year on year increase. Accumulatively, there are 109, 000 Indians visiting Vietnam in the first 11 months of 2022, ranking 9 out of 10 Vietnamese biggest inbound markets. Commenting on the data, a Vietjet spokesperson said that this achievement was possible mainly from Vietjet’s contributions.

“As an airline which operates most routes connecting two countries, we see more spaces for airlines to meet the demand of travel for business and leisure between Vietnam and India. This will help to boost economic – trade cooperation between two countries and speed up post-pandemic recovery. At present, Vietnam and India are negotiating the Bilateral Aviation Agreement. We believe that the conclusion of this agreement will pave a good way for aviation and tourism industries in Vietnam and India together, and of course to offer better benefit for tourists visiting two countries,” the spokesperson added.

Leave a Comment

Ads Blocker Image Powered by Code Help Pro

Ads Blocker Detected!!!

Please consider supporting us by disabling your ad blocker on our website