Airline Traffic Growth Archives

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

India

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

ICAO

ICAO Warns of Rising Air Safety Risks as Global Flight Activity Hits Record Levels

Aviation Today News Desk / August 27, 2025

Montreal, Canada: The International Civil Aviation Organization (ICAO) has sounded a strong warning on global air safety, highlighting rising accident

Airline Traffic Growth

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

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

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

ICAO Warns of Rising Air Safety Risks as Global Flight Activity Hits Record Levels

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