This report profiles India’s aviation industry, discussing market trends through 2014 and outlook for 2015 and beyond. The report also highlights leading players in the sector including Jet Airways (India) Ltd, SpiceJet Ltd and GMR Infrastructure Ltd. The Indian aviation industry witnessed a period of high growth during 2003-11, with total passenger traffic growing at a CAGR of around 18%. The industry has also helped in stimulating other sectors of the economy such as tourism, hospitality and trade. However, during 2012-13, the industry saw a period of subdued growth, particularly in domestic passenger traffic. Indian aviation sector saw a recovery in terms of passenger traffic in 2014 after the unexpected decline of 2012 and subdued growth in 2013. The recovery in passenger traffic was backed by a reduction in aviation turbine fuel (ATF) costs. The second half of 2014 saw a major decline in crude prices, which subsequently affected ATF prices. The ATF index was down by 36% y/y as compared to March 2014 figure. Lower fuel prices brought a much needed relief for Indian air carriers. Not only did it help in reducing costs but also in launching attractive discounts and offers which enhanced the passenger traffic during the first four months of FY15. Going by the trend, the Indian aviation industry is expected to witness a strong year in 2015 backed by lower fuel costs and increase in passenger traffic. Depreciation of the Indian rupee, rise in fuel prices and highly leveraged balance sheets are the biggest challenges for the sector. Nonetheless, the rising middle class and consistent growth in tourism bodes well for the sector. Key Points: • In the first four months of 2015, passenger traffic at domestic terminals grew by 21% y/y. International terminal passenger traffic, meanwhile, grew by 9% y/y. • The utilization of available passenger capacity for scheduled domestic carriers was around 83% for the first four months of 2015. JetLite recorded the highest passenger load factor, followed by Jet Airways. • Domestic aircraft movements grew at a CAGR of 12% during 2003-11. However, it remained stagnant in 2012-13. It saw a revival in 2014, growing by 5% y/y. The growth trend continued in the first four months of 2015 with domestic aircraft movements growing by 4% y/y.