CAPA India

CAPA India is pleased to be collaborating with @AustradeIndia to present this webinar on the opportunities for #Australian businesses in India's rapidly expanding #airport sector, on Thursday 26 February at 10am IST/3.30pm AEDT. Registration is free at: lnkd.in/gY6HCwnr

We recently released the mid-year update to our annual outlook for FY2025. However, there are a number of key issues that we are tracking very closely, which extend beyond the current financial year. Read more below. linkedin.com/pulse/key-issu…

CAPA India Aviation Outlook FY25 - Mid Year Update: Our projection for consolidated Indian airline financials remains unchanged, with an expected industry-level loss of USD0.4–0.6bn, despite another large profit by @IndiGo6E. We expect IndiGo to post an estimated profit of ~USD0.75bn (down from our earlier estimate of USD1.0bn). Improved financial performance by @airindia is expected to reduce FSC losses from our earlier projection of around USD0.9-1.0bn to USD0.75-0.80bn. #IndianAviation

CAPA India Aviation Outlook FY25 - Mid Year Update: Our projection for international traffic also remains as per our original forecast at the start of the year, at 9%-11%, or 76-78 million pax. Again with guidance towards the higher end of the range. Both @airindia and @IndiGo6E continue to focus on international expansion despite capacity challenges. #IndianAviation

CAPA India Aviation Outlook FY25 - Mid Year Update: We continue to maintain full-year projection for domestic traffic growth at 6%-8% i.e. around 162-165 million pax, with guidance towards the higher end. Capacity constraints remain a bottleneck with around around 120 aircraft still expected to be grounded in Mar-2025. #IndianAviation

At our next online advisory briefing, at 4pm IST tomorrow, Thursday 24 October, we’ll present the mid-year update to the CAPA India Aviation Outlook for FY2025, with projections for operating and financial metrics during the second half of this financial year. We’ll also share our perspective on the key strategic trends that we’re tracking beyond the next six months, including for example: - Supply chain challenges and their long-term impact - Changing dynamics of airline competition and profitability - Outlook for bilateral policy and market access - Changing of gears at @IndiGo6E with the launch of business class and other initiatives - The likely competitive response to IndiGo by @AirIndiaX - Progress of @airindia's transformation plan - Impact of the merger of Air India and @airvistara - Airline multi-hub strategies and what they mean for airports - Pilot and skills shortages - Emergence of dual airport systems in the two largest metros and their impact on network planning - Industry capitalisation requirements Join us to understand where #IndianAviation is headed. Registration is complimentary at zoom.us/webinar/regist… CAPA India’s annual outlook leverages our 21 years of experience, during which time we have completed more than 1100 consulting and research assignments for 400+ clients across the aviation value chain. Our clients are able to benefit from this experience to better plan and prepare for success in the world’s fastest growing aviation market.

The inaugural CAPA India Digital Aviation Summit on 30-Sep & 01-Oct brought together some of the leading experts from airlines, airports, solutions providers and technology companies for two days of fascinating discussions on how digitalisation can drive genuine business transformation in the aviation industry. For those that missed out, you can view some highlights below. Make sure to join us next year. In the meantime, we’ll be sharing video excerpts of the proceeding over the coming weeks. For any additional information email marketing@capaindia.com #IndianAviation #DigitalTransformation #Technology

At our next online advisory briefing at 4pm IST on Thursday 24 October, we’ll present the mid-year update to the CAPA India Aviation Outlook for FY2025, with projections for operating and financial metrics during the second half of this financial year. We’ll also share our perspective on the key strategic trends that we’re tracking beyond the next six months, including for example: - Supply chain challenges and their long-term impact - Changing dynamics of airline competition and profitability - Outlook for bilateral policy and market access - Changing of gears at @IndiGo6E with the launch of business class and other initiatives - The likely competitive response to IndiGo by @AirIndiaX - Progress of @airindia's transformation plan - Impact of the merger of Air India and @airvistara - Airline multi-hub strategies and what they mean for airports - Pilot and skills shortages - Emergence of dual airport systems in the two largest metros and their impact on network planning - Industry capitalisation requirements Join us to understand where #IndianAviation is headed. Registration is complimentary at hhttps://zoom.us/webinar/register/8917268113658/WN_Pk4TC8jbRSSkIyf9eLkFhw CAPA India’s annual outlook leverages our 21 years of experience, during which time we have completed more than 1100 consulting and research assignments for 400+ clients across the aviation value chain. Our clients are able to benefit from this experience to better plan and prepare for success in the world’s fastest growing aviation market.

Each year in March, CAPA India prepares its annual aviation industry outlook for the upcoming financial year. This is supplemented by our mid-year guidance which is released in October. Our mid-year guidance for FY2025 is closely aligned with our original forecast released at the start of the year, continuing our 21-year track record of accurately projecting the outlook for the industry across operating, financial and strategic metrics, even in uncertain environments. In March of this year we had projected that domestic traffic in FY2025 would increase by 6.0-8.0% year-on-year, while international traffic would grow by 9.0-11.0%. In the six months to Sep-2024, domestic passenger numbers were up 6.5%, while international traffic has risen by 12.0%. Although the industry has tracked in line with our expectations for the last six months, there is considerable uncertainty with respect to the operating environment during the second half of the financial year: - Geo-political clouds are casting a significant shadow. The #RussianUkrainianWar continues, with no end in sight, while #MiddleEastTensions are rising to a level that could potentially have serious global ramifications. The direction of both of these conflicts could be strongly influenced by the outcome of the #USElection2024, which remains uncertain. - Cost headwinds are resuming. The declining trend in oil prices during the last six months has reversed in the last couple of weeks, with Brent Crude again having briefly touched USD80/barrel. Meanwhile the Indian Rupee has crossed USD1=INR84 for the first time. - The second quarter is traditionally a weak period for domestic traffic, but demand was perhaps more sluggish than expected. However, there has been some positive momentum in the last 2-3 weeks. Daily domestic passenger numbers during the second half of September were just over 6% higher than during the first half of the month. It remains to be seen whether this momentum continues through the festival season. - Supply chain issues have plagued the industry for some time but are becoming more serious. In addition to engines, they are now also impacting components and avionics. A significant number of aircraft remain on the ground and future delivery schedules remain compromised, with delays of 6-9 months being common. This is being further compounded by industrial unrest at @BoeingAirplanes, creating uncertainty for both narrowbody and widebody capacity. - Airlines will need to deal with emerging pilot and other staffing shortages. - @flyspicejet successful recapitalisation last month, which will facilitate its plans for rapid expansion from its currently truncated operations, will have an impact on competitive dynamics in the industry. - Due to capacity constraints and strong yields, airlines have enjoyed relatively positive financials during the last 18 months, with either record profits or at least significantly reduced losses. But will this environment continue? We continue to believe that the long-term fundamentals for Indian aviation remain very strong, given the prospects for growth in demand and the fact that the industry is led by two key airlines - @airindia Group and @IndiGo6E - that have strong balance sheets and the determination to success. However, short-term challenges are expected in the coming months. CAPA India will present its perspective on these critical strategic issues at our online advisory briefing on 24-Oct-2024. Registration is complimentary at zoom.us/webinar/regist… CAPA India’s annual outlook leverages our 21 years of experience, during which time we have completed more than 1100 consulting and research assignments for 400+ clients across the aviation value chain. Our clients are able to benefit from this experience to better plan and prepare for success in the world’s fastest growing aviation market.

We were proud to be part of the insightful Digital Aviation Summit organized by @capa_india. Our CTO, Prasanna Subramaniam, joined Murali Karthik, VP & Head of Enterprise IT, Air India, for a discussion on the state of digital transformation across Indian airlines. #CIDAS24

🎉 That's a wrap for #CIDAS24! A big thank you to our incredible #sponsors for making the @capa_india Digital Aviation Summit 2024 possible! 🙌 @MGH_Group, @SITAonline, @CollinsAero, and #Travesla, we appreciate your support! A special shoutout to our amazing hospitality partner @AndazDelhi. Until next time! ✈️✨ #CAPAIndia #AviationIndia #IndianAviation #CIDAS24

At #CIDAS24, @simmi_dhamija from @aionostech highlights that for #airports, knowing customers is the first step to augment non-aero revenue. #AI, design thinking and other platforms should be used to enhance passenger experience and then communicate effectively. We have to have a holistic view. #CAPAIndia #IndianAviation #AviationDaily #AviationIndia

At #CIDAS24, Arun Barathi from ARMB Consulting shares that Indian #airports face the challenge of increasing non-aero revenue. While a pax spends USD10–11 on #dutyfree at Indian airports, spends at @DXB stands at USD25 per pax. We have been talking about increasing non-aero revenue for 10 years, but the situation has not improved much. He adds that #digital and #AI may help in bridging the gap between customer demand and non-aero revenue options at #airports. #CAPAIndia #IndianAviation #AviationDaily #AviationIndia

We now have the final session of the CAPA India Digital Aviation Summit 2024: Panel discussion on maximising retail and non-aero revenues using #digital and data solutions! Featuring Arun Barathi, Director at ARMB Consulting, and @simmi_dhamija, COO at @aionostech! #CIDAS24 #CAPAIndia #IndianAviation #AviationDaily #AviationIndia

At #CIDAS24, Rishi Mehta from @WeAreWAISL shares that the emotional connect of a customer with a brand is very critical. We look at customer experience at all touchpoints: pre, during and post travel through airport. #CAPAIndia #IndianAviation #AviationDaily #AviationIndia #Indianairports

Up next at #CIDAS24, we have a panel discussion on ‘transforming passenger experience through #digitalisation’! Featuring Raghav Kumaria, Head of Technology & CX Transformation at @aionostech; Rishi Mehta, CEO at @WeAreWAISL; and Jeff Kaeonil, Design Principal at @HOKNetwork! #CAPAIndia #IndianAviation #AviationDaily #AviationIndia

At #CIDAS24, @SatyakiRaghuna1 highlights @BLRAirport is doing a trial of low-visibility operations and would like to reach the levels of @HeathrowAirport and @DubaiAirports in terms of #operating efficiency in the long term. #CAPAIndia #IndianAviation #AviationDaily #Airportdigitalisation

At #CIDAS24, @SatyakiRaghuna1 from @BLRAirport shares collaboration is essential with all stakeholders in the #aviation ecosystem, adding a #B2C #airport app may be rendered redundant unless it is a significant value addition over an #airline app and #Digiyatra, such as prebooking parking or securing a spot in a less congested security lane. @DigiYatraOffice #CAPAIndia #IndianAviation #AviationDaily