Traffic crossed 100 million in the calendar year 2017, a growth of 17 per cent on a year on year basis.
IndiGo, which is the largest domestic airline with a fleet of over 150 planes, is expected to add 60-62 aircraft in the next fiscal. This would be almost equal to capacity addition by all the main airlines.
The capacity induction will also lead to Indian carriers expanding their international network and CAPA expects 25 narrow body inductions for overseas operations. International air traffic will grow 12 per cent and cross 70-75 million next fiscal.
While low-cost airlines led by IndiGo are expected to post $ 468-515 million profit, full-service airlines will lose $ 900-925 million in next fiscal. CAPA expects average crude oil price at around $ 70. The projections do not factor aspects like compensation received from engine and aircraft manufacturers.
"The massive capacity expansion will place pressures on fares and airlines will look to grow their ancillary revenue," CAPA South Asia CEO Kapil Kaul said.