160 aircrafts in India currently grounded, may compromise traffic growth in short term: CAPA

Around 160 aircraft in India are currently grounded, the majority due to supply chain challenges, reveals CAPA. This figure could cross 200 aircraft by 31-Mar-2024, or close to 25% of the projected fleet on the register as of that date. This is undoubtedly compromising traffic growth in the short term. Despite these constraints, domestic traffic in the first 8 months of FY2024 is up around 20% yoy, and international by around 25%. Both are expected to exceed their pre-pandemic highs this year. A performance that reflects the resilience of Indian aviation. However, with supply chain risks expected to continue into FY2025, there could be a further impact not only on traffic, but also on financials.