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Air Travel Growth

Hanoi, Vietnam: Vietnam’s civil aviation sector has grounded 28 commercial aircraft as part of a broader global engine shortage that continues to disrupt airline fleet operations and maintenance timelines, industry sources and official data confirm. According to figures released by the Civil Aviation Authority of Vietnam (CAAV) and industry reporting, the affected aircraft represent approximately 13.1 per cent of Vietnam’s operational commercial fleet, underscoring the depth of the ongoing supply chain challenge. The grounding stems from an extended recall and repair cycle for Pratt & Whitney’s PW1000G geared turbofan engines, which power a large portion of narrow‑body jets such as the Airbus A321neo. These engines have been subject to global maintenance and availability constraints, affecting multiple airlines worldwide. Of the aircraft currently out of service in Vietnam: 24 are Airbus A321neo aircraft Three are Airbus A350s One is an Airbus A320ceo Despite reduced fleet availability, carriers based in Vietnam have maintained core route operations, both domestically and internationally. Hanoi (HAN) and Ho Chi Minh City (SGN) continue to serve as major aviation hubs, linking close to 50 domestic routes across 20 airports. On the international front, Vietnamese airlines operate over 110 scheduled routes to more than two dozen countries, while foreign carriers maintain robust connections with Vietnam through over 140 services. Strong travel demand has bolstered resilience across the sector. Preliminary data estimates that international passenger numbers will reach around 46.9 million in 2025, marking roughly a 13.3 per cent increase compared with the previous year. Domestic passenger traffic also rose, with nearly 36.6 million travellers, reflecting sustained demand across segments. Total passenger traffic is seen growing by upwards of 6.7 per cent, while cargo volumes have climbed by 4.6 per cent over the same period. Vietnam’s aviation regulator and airline operators have initiated strategies to mitigate the impact of grounded aircraft, including fleet reallocation, schedule adjustments, and prioritising high‑demand routes. The CAAV has signalled that while the number of grounded jets has eased compared with earlier reports in 2025, supply chain recovery challenges persist. Looking ahead, Vietnam’s air transport sector is pursuing ambitious growth targets for 2026, aiming to accommodate up to 95 million passengers alongside expanded cargo operations, signalling confidence in long‑term traffic growth despite underlying technical challenges

Vietnam Grounds 28 Aircraft Amid Global Engine Shortages, Operations Disrupted

Aviation Today News Desk / December 18, 2025

Hanoi, Vietnam: Vietnam’s civil aviation sector has grounded 28 commercial aircraft as part of a broader global engine shortage that […]

Riyadh, Saudi Arabia: Saudi Arabia is preparing to launch three new airlines, a significant expansion of its aviation ecosystem as the kingdom accelerates its Vision 2030 strategy to boost tourism, improve connectivity and transform into a global aviation hub. Fahd Hamidaddin, CEO of the Saudi Tourism Authority, confirmed the plan, saying the new carriers will complement the existing network led by Saudia, Riyadh Air, flynas and flyadeal. “A successful national airline builds a destination, Riyadh Air, Saudia and three more air carriers to be announced,” he said. The first of the three new carriers will be a low-cost airline based at King Fahd International Airport in Dammam. The airline will be operated by a consortium comprising Air Arabia, Nesma Group, and KUN Holding, after the group won the government tender earlier this year. According to public disclosures, the new LCC plans to operate 45 aircraft by 2030, fly 24 domestic and 57 international routes, and handle around 10 million passengers annually. It is also expected to generate approximately 2,400 direct jobs once fully operational. These developments align with Saudi Arabia’s push to decentralize aviation capacity beyond Jeddah and Riyadh, strengthening the Eastern Province as a competitive hub for both domestic and regional travel. A second airline will be established in Medina, focused on serving the booming religious tourism sector. The carrier is expected to support Hajj and Umrah operations by providing direct international connectivity to the holy city, reducing pressure on Jeddah’s King Abdulaziz International Airport. Government officials indicated that tenders for the Medina-based airline are expected within months, signaling that planning is already in advanced stages. The third airline remains undisclosed, with no public confirmation on whether it will be a full-service, hybrid or low-cost carrier. Industry observers say the airline could target underserved regional markets or support long-haul connectivity as Saudi Arabia expands its inbound tourism targets. Saudi Arabia handled 128 million passengers in 2024, a double-digit increase that has reinforced the need for expanded airline capacity and airport infrastructure. The kingdom has committed $100 billion to overhaul and modernize its aviation sector, including airport development, new carriers, digital transformation and long-term fleet investments. Riyadh Air is scheduled to launch international operations in 2025, while Saudia Group is expanding through flyadeal’s recent order of 10 Airbus A330neo aircraft, signaling the nation’s broader shift toward becoming a top global aviation market. The launch of three new airlines represents one of the most aggressive aviation expansions currently underway globally, positioning Saudi Arabia to handle its revised tourism target of 150 million annual visitors by 2030.

Saudi Arabia To Launch Three New Airlines To Boost Tourism And Aviation Growth

Aviation Today News Desk / November 24, 2025

Riyadh, Saudi Arabia: Saudi Arabia is preparing to launch three new airlines, a significant expansion of its aviation ecosystem as

New Delhi, India: India’s aviation industry is bracing for a difficult FY2026, with ICRA estimating sector-wide losses to climb to Rs 95–105 billion, almost double the Rs 55 billion loss expected in FY2025. Softening passenger growth, upcoming fleet inductions and ongoing global and domestic disruptions are set to pressure financial performance. Even so, ICRA has maintained a stable outlook for the year, supported by steady travel demand, though influenced by cross-border tensions, accident-related caution and tariff-linked challenges on the commercial side. Domestic passenger traffic in October 2025 reached 142.8 lakh, up 4.5% from October 2024 and 12.9% higher than September 2025. Capacity deployment grew 1.7% year-on-year to 99,816 departures, with passenger load factor rising to 84.7%, compared with 82.4% a year earlier. For April–October 2025, domestic traffic stood at 944.5 lakh, a 1.6% year-on-year increase. ICRA expects full-year FY2026 domestic travel to grow 4–6%, reaching 172–176 million passengers. International traffic carried by Indian airlines rose 5.8% year-on-year in September 2025, touching 28.3 lakh, though sequentially down by 5.7%. In H1 FY2026, international traffic reached 175.6 lakh, marking 9.1% growth. ICRA projects further expansion of 13–15% in FY2026. Aviation turbine fuel (ATF) remains a key cost concern. ATF prices in November 2025 were 4.4% higher year-on-year and 0.8% higher month-on-month. FY2025 had seen average ATF prices fall to Rs 95,181 per KL, about 8% lower year-on-year, but recent months have reversed that relief. Fuel constitutes 30–40% of airline operating expenses, while 35–50% of major costs are dollar-linked. The rupee’s depreciation in Q2 FY2026 led to notable forex losses for several carriers, though most remain unrealised. Fleet shortages persist. Pratt & Whitney engine problems and broader supply-chain delays resulted in around 133 aircraft being grounded across various airlines by March 2025, representing 15–17% of total industry capacity. IndiGo had 70 aircraft grounded in March 2024 due to powder-metal contamination, which reduced to about 40 by September 2025. Go Airlines, hit by similar issues, eventually grounded half its fleet in FY2024 and suspended operations. These constraints have increased operating costs through replacement leases, poorer fuel efficiency and higher spot-rental rates. Despite strong PLFs and firmer yields, profitability remains limited. The industry’s interest coverage ratio is expected to remain at 1.5–1.7 times for FY2026. Large carriers benefit from parent backing, while others continue to face liquidity stress and stretched balance sheets. The DGCA has proposed new passenger-centric norms allowing customers to cancel or modify tickets within 48 hours of booking without charges, provided the travel date is beyond five days (domestic) or fifteen days (international). Refunds are to be processed within 21 working days.

Aviation Forecast

ICRA Warns Of Rs 105 Billion Loss For Indian Aviation In FY2026 Amid Slowing Growth

Aviation Today News Desk / November 21, 2025

New Delhi, India: India’s aviation industry is bracing for a difficult FY2026, with ICRA estimating sector-wide losses to climb to

Dubai, United Arab Emirates: Flydubai has signed a Memorandum of Understanding (MoU) with Airbus to acquire 150 A321neo aircraft, representing the airline’s first major commitment to Airbus and ending its historic reliance on Boeing for narrow-body jets. The MoU was announced during the Dubai Airshow 2025, highlighting flydubai’s strategic growth plans aligned with Dubai’s long-term economic vision. The signing ceremony included Sheikh Ahmed bin Saeed Al Maktoum, Chairman of flydubai, Ghaith Al Ghaith, CEO of flydubai, and Christian Scherer, Airbus Chief Commercial Officer. Sheikh Ahmed described the MoU as a “landmark” agreement that goes beyond fleet expansion, underscoring flydubai’s role in supporting Dubai World Central (DWC), the emirate’s growing aviation hub. Until now, flydubai has operated an exclusively Boeing 737 fleet. The inclusion of Airbus A321neos marks a strategic diversification of its narrow-body fleet, providing more operational flexibility and positioning the airline to meet increasing demand on regional and international routes. Analysts note that diversifying suppliers reduces dependency risks and strengthens negotiating leverage. The agreement also includes 100 additional options and carries an estimated value of US$ 24 billion, emphasizing flydubai’s long-term commitment to fleet modernization. Deliveries are scheduled to begin in 2031, reflecting a measured, strategic expansion rather than immediate capacity growth. The A321neo is Airbus’ latest-generation narrow-body aircraft, equipped with advanced engines, Sharklets, and cabin innovations that deliver over 20% fuel savings and CO₂ reduction compared with previous-generation models. The aircraft also supports operations with up to 50% Sustainable Aviation Fuel (SAF) today, with Airbus targeting full 100% SAF capability by 2030, reflecting the airline’s and manufacturer’s commitment to sustainable aviation. According to Ghaith Al Ghaith, flydubai’s CEO, the acquisition aligns with Dubai’s Economic Agenda D33, aiming to strengthen connectivity across the Middle East, Asia, and Europe, while supporting the emirate’s infrastructure and aviation growth objectives. The MoU represents a commercial breakthrough for Airbus, acquiring a customer historically loyal to Boeing. The deal reinforces Airbus’ presence in the Middle East, a region experiencing rapid growth in air travel. For Boeing, the shift signals increasing competitive pressure in the single-aisle segment, as airlines seek more fuel-efficient and flexible fleet options. Analysts note that while the MoU is not yet a firm order, its size and scope make it one of the largest narrow-body commitments in recent years. Airbus will need to scale up A321neo production to meet the projected delivery schedule, amidst growing global demand for single-aisle jets. Flydubai’s move to include Airbus A321neos strengthens its long-term growth trajectory, supporting network expansion, operational efficiency, and sustainability goals. The aircraft are expected to serve high-density regional and international routes, positioning the airline to capitalize on the post-pandemic travel recovery and Dubai’s rising role as a global aviation hub. As deliveries begin in 2031, this landmark agreement sets a precedent in Middle Eastern aviation, highlighting the shift toward modern, fuel-efficient aircraft while reshaping the competitive landscape between Airbus and Boeing in the region.

Flydubai Signs Landmark MoU For 150 Airbus A321neos, Ending All-Boeing Narrow-Body Era

Aviation Today News Desk / November 19, 2025

Dubai, United Arab Emirates: Flydubai has signed a Memorandum of Understanding (MoU) with Airbus to acquire 150 A321neo aircraft, representing

New Delhi, India: ICRA has revised its domestic air passenger growth projection for FY26 to 4–6%, down from the previous estimate of 7–10%. This adjustment follows a modest 0.3% year-on-year increase in passenger traffic to 13.17 million in August 2025. The revised forecast anticipates a total of 172–176 million domestic passengers for the fiscal year, compared to 165.4 million in FY25. International air traffic growth estimates have also been reduced to 13–15% for FY26, from the earlier projection of 15–20%. Factors contributing to this downgrade include geopolitical tensions affecting flight operations, decreased travel confidence following a recent aircraft accident, and global trade challenges such as the impact of U.S. tariffs. Consequently, ICRA projects the aviation sector's net losses to widen to ₹9,500–10,500 crore in FY26, up from ₹5,500 crore in FY25. This increase is attributed to slower passenger growth amid rising aircraft deliveries and operational hurdles. Industry capacity also declined, with capacity deployment in August 2025 dropping 5.8% compared to the same month last year. Supply chain disruptions and engine issues, particularly involving Pratt & Whitney engines, have led to approximately 133 aircraft being grounded as of March 31, 2025, accounting for 15–17% of the total industry fleet. Despite a decrease in aviation turbine fuel (ATF) prices, cost pressures persist due to the dollar-denominated nature of key operating expenses, including fuel, aircraft leases, and maintenance. These factors continue to impact airlines' profitability. ICRA notes that while some carriers benefit from strong parental support and adequate liquidity, others may face challenges in maintaining credit metrics and liquidity profiles in the near term.

ICRA Slashes India’s FY26 Air Passenger Growth Forecast to 4–6%, Warns of Losses

Aviation Today News Desk / October 4, 2025

New Delhi, India: ICRA has revised its domestic air passenger growth projection for FY26 to 4–6%, down from the previous

London, United Kingdom: The UK aviation industry has reached new heights, with a record 81 million passengers traveling through its airports between April and June 2025, according to the latest report from the Civil Aviation Authority (CAA). This marks the highest quarterly passenger total on record, surpassing pre-pandemic levels and contributing to a total of 141 million travelers in the first half of the year, a 3% increase compared to the same period in 2024. The surge in passenger numbers is attributed to a combination of factors, including pent-up demand for travel, increased consumer confidence, and the easing of global travel restrictions. Europe remained the most popular international region for UK travelers, with destinations such as Dublin, Amsterdam, Palma de Mallorca, and Alicante seeing significant traffic. Notably, airports in the north of England, including Liverpool, Manchester, Newcastle, and Leeds Bradford, collectively welcomed nearly 750,000 additional passengers, highlighting the regional strength of the aviation sector. In addition to the record passenger numbers, the industry has demonstrated notable improvements in operational efficiency. Flight punctuality has seen a significant boost, with 75% of flights departing on time a marked increase of 8 percentage points compared to the same period in 2024. April was particularly strong, with 82% of flights departing as scheduled. Cargo operations have also rebounded, with nearly 700,000 tonnes of goods handled at UK airports between April and June. This represents a 6% year-on-year increase, surpassing pre-pandemic volumes. Key international cargo routes included Dubai, New York, Doha, and Leipzig, with notable growth in deliveries to Asian markets, including a 61% increase to Delhi and a 41% rise to Mumbai. Looking ahead, the CAA anticipates continued growth during the peak summer travel season, with expectations for another record-breaking quarter. The positive trends underscore the resilience of the UK aviation sector and its critical role in supporting economic recovery and connectivity. As the industry continues to evolve, stakeholders remain focused on sustaining growth while enhancing service standards and operational efficiency to meet the demands of an increasingly dynamic global travel landscape.

UK Aviation Hits Record 81 Million Passengers in Spring 2025 Amid Strong Growth

Aviation Today News Desk / September 11, 2025

London, United Kingdom: The UK aviation industry has reached new heights, with a record 81 million passengers traveling through its

New Delhi, India: A new report by Knight Frank, forecasts a remarkable rise of almost 50% in India’s annual air passenger traffic over the next five years. Passenger numbers are projected to escalate from 412 million in FY25 to 600 million by FY30. According to the report, this substantial jump will drive a sharp increase in aeronautical revenues, driven by both higher passenger counts and enhanced spending per traveler. A major highlight of the analysis involves non-aeronautical revenue streams which include retail, food and beverage, duty-free shopping, parking, advertising, and real estate leasing. Airports operating under the public–private partnership (PPP) model are pivotal: while they handle 64% of India’s total air traffic, they generate a dominant 87% of the nation’s non-aero revenue. The report also spotlights the performance of India’s busiest airports, Mumbai Airport earns approximately USD 20.1 per passenger from non-aero sources. Delhi Airport closely trails with about USD 18.1 per passenger. These numbers are impressively close to global aviation giants like London Heathrow (USD 21.6) and Tokyo Haneda (USD 19.9). Knight Frank's analysis emphasizes that India’s airports are now at a strategic crossroads. With passenger volumes expected to soar to 600 million by FY30, financial sustainability will increasingly depend on diverse revenue models. The report urges airport developers and operators to move beyond traditional infrastructure approaches and adopt the concept of aerocities integrated commercial hubs encompassing retail, hospitality, leasing, and other services turning airports into urban growth engines, not just transit points. The projected surge in air travel offers both significant opportunities and challenges. Operators must balance capacity expansion with revenue diversification to ensure long-term resilience as passenger numbers climb.

India’s Air Passenger Traffic Expected to Reach 600M Annually by FY30, Says Report

Aviation Today News Desk / September 5, 2025

New Delhi, India: A new report by Knight Frank, forecasts a remarkable rise of almost 50% in India’s annual air

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