India Passenger Traffic Transitions to Growth

• India’s domestic passenger traffic recovers to 98% of pre-pandemic levels, while international networks expands
• Growth for the domestic market is expected to double by the end of this decade
• Asia Pacific freighter fleet to grow to 3,610 deliveries by 2041

Bengaluru,  February 14, 2023 - Boeing [NYSE:BA] today unveiled its 2022 Commercial Market Outlook (CMO) for India, forecasting long-term passenger growth rate of nearly 7% annually through 2041.

Largely driven by the strength of the domestic market, which has recovered to 98% of pre-pandemic levels, India’s traffic has transitioned from recovery to growth. As a result, Indian airlines will add 7% more supply in the first half of 2023, compared to 2019. Due to the rapid growth of its domestic traffic, Boeing forecasts that 90% of new airplane deliveries to India will be for single-aisle airplanes like the 737 MAX over the next 20 years. India will require approximately 2,210 new airplanes over the next two decades of which 1,983 units will be for single-aisle jets, while 227 units or 10% of new airplane deliveries will be for widebody airplanes.

“The Indian market is recovery rapidly and its domestic capacity has exceeded 2019 levels, with domestic traffic expected to double by the end of this decade,” said Dave Schulte, Boeing Commercial Marketing managing director for Asia Pacific. “Indian carriers will outpace global growth at nearly 7% and more than 80% of new airplane deliveries to this market will be for growth, while 20% of new airplanes will be for replacement of aging jets. This trend exemplifies India’s commitment to modernizing its fleet with more sustainable and fuel-efficient next-generation airplanes.”

In addition, the India cargo market will also continue to expand over the next two decades to meet demand. The cargo fleet will grow from about 15 airplanes today to about 80 airplanes by 2041. These will predominantly be the converted narrow-body sized aircraft to support domestic and regional growth, as well as a number of production and conversion widebody freighters to support global operations.

The 2022 India and South Asia CMO includes these projections through 2041:

• Demand for 1,983 single-aisle and 227 widebody airplanes to support robust domestic growth as well as long-haul traffic demand.
• Demand for commercial services to support fleet replacement valued at $135 billion.

Boeing’s annual global and regional forecast of demand for commercial airplanes is available at: https://www.boeing.com/commercial/market/commercial-market-outlook/

About Boeing India

Boeing is focused on delivering value to Indian customers with advanced technologies and is committed to creating sustainable value in the Indian aerospace sector – developing local suppliers, and shaping academic and research collaborations with Indian institutions. Boeing has strengthened its supply chain with more than 300 local companies in India and a joint venture to manufacture fuselages for Apache helicopters and vertical fin structures for the 737 family of airplanes. Annual sourcing from India stands at over $1 billion. Boeing currently employs over 5,000 people in India, and more than 13,000 people work with its supply chain partners. Boeing’s employee efforts and country-wide engagement serve communities and citizenship programs to inspire change and make an impact on more than 500,000 lives. Learn more at www.boeing.co.in.