Air India targets long-haul transit traffic to boost revenue growth

Air India is focusing on increasing its share of long-haul transit traffic by connecting passengers from North America and Europe to Asia through India. Currently, foreign airlines dominate this market with an 80% share, while Indian airlines hold less than 15%. Since being acquired by the Tata Group in January 2022, Air India has seen significant revenue growth, with passenger revenue increasing 1.6 times and cargo revenue rising 1.9 times. The airline plans to enhance its international capacity and improve flight timings to attract more transit traffic. Air India's revenue has grown nearly tenfold since FY20, and it has a fleet order for 600 new aircraft over the next decade. The airline aims to capitalize on the organic growth opportunities in the long-haul market, projecting a potential annual growth of 6-7%.