List of Aviation Stocks in India 2024

The aviation sector in India is growing rapidly from the past few decades, due to increase in air travel demand and economic growth, and the government also increasing its efforts to enhance infrastructure to attract foreign investments. In 2024, India’s domestic aviation market surpassed Brazil and Indonesia to become the third-largest domestic aviation market, following the USA and China. From the last three years, the aviation industry has become the fastest-growing industry.

India’s domestic air traffic indicates its dominance in South Asia, by contributing 69% of the total airline traffic. Based on orders and expected delivery of aeroplanes, India is going to increase its number of aeroplanes to 1100 by 2027. The Covid-19  pandemic affected India’s aviation industry very badly due to lockdown and travel restrictions. However, post-pandemic, India’s aviation industry successfully recovered, as evidenced by passenger traffic figures.

In FY 2024, domestic passenger traffic in India is 306.79 million, higher than previous fiscal year at the rate of 13.5%. Similarly, International passenger traffic in India reached 69.64 million in FY 24, higher than previous fiscal year at the rate of 22.3%. This increase in traffic has not only increased the volume of passengers but also it increases the ticket fares, which is giving the aviation industry a boost in its revenues.

For investors, it is a golden opportunity to invest and grow their investment as this industry is growing significantly. In this blog post, we are going to delve deeply into top Aviation stocks in India.

What are Aviation stocks in India?

Aviation stocks are the shares of companies in India that are involved in the airline industry, airport operation, services, and aircraft manufacturing. Famous airline companies like Indigo, Spicejet, and Air India are key players in the Indian market. Apart from these, there are airport stocks such as GMR and Adani enterprises, which manage numerous major airports in the country.

These stocks are impacted by various factors, such as fuel prices, air traffic, and government regulations. As the aviation industry grows in India, investors are keeping a close eye on airline stocks and airport-related companies.

Top 5 Aviation Stocks in India in 2024 as Per Market Capitalization

The top Aviation Stocks in India are:

Overview of Best Aviation Stocks In India

Here, you will understand the best aviation stocks in India in 2024 as per market capitalization.

1. InterGlobe Aviation Ltd.

InterGlobe Aviation Ltd, also known as Indigo, is a low-cost Indian airline headquartered in Gurgaon, Haryana. Indigo was founded as a private enterprise by Rahul Bhatia and Rakesh Gangwal in 2006.

It is India’s largest airline company in terms of passenger carried and fleet size, with a market share of 62% in FY 24. Individually, it is the largest airline in Asia and one of the largest airlines in the world in terms of passengers carried.

As of November 2024, with a fleet of more than 390 aircraft, it operates 2000 flights daily, connecting passengers across the globe to 122 destinations, 88 domestic and 34 internationally. Indigo’s unique business model is it offers passengers a straightforward,  unbundled service, fulfilling its brand promise of low-fare tickets, on-time flights, and supportive and hassle-free service to its customers.

InterGlobe Aviation has a market share of 18% in the international passenger segment. It has become the 7th largest airline on the basis of daily departures and the first Indian airline with a large fleet of 300+ aircraft. The airline operates a single kind of aircraft (Airbus A320) in a similar seating pattern, which simplifies crew training and maintenance. The airline targets a quick turnaround time of 20 minutes to get the aircraft ready for the next flight.

2. GMR Airports Infrastructure Ltd.

GMR Airports Infrastructure Ltd(GIL) is a leading airport platform with over two decades of expertise in airport development and management. It is Asia’s largest and the world’s second-largest airport operator. GIL served over 121 million passengers in FY 24, with key operations in Delhi, Hyderabad, Goa and Medan.

Apart from being the largest airport company in India, GMR Group is the only Indian company that has developed and operated airports outside of India. Presently, GIL operates Mactan Cebu International Airport in the Philippines and Kualanamu International Airport in Indonesia. The group has also been selected to develop, operate and manage Crete’s new Kastelli Airport in Greece.

GIL holds 9th rank in terms of the number of airport assets under operation or in various stages of development. In the number of passenger traffic in India, it holds a 27% share in FY 24.

3. Spicejet Ltd.

Spicejet is another prominent player in the airline industry in India. It is headquartered in Gurgaon, Haryana, and is a preferred low-cost airline. The airline operates a maximum number of UDAN flights across India. 

Spicejet was established as air taxi provider Modiluft in 1994; later, the company was acquired by Indian entrepreneur Ajay Singh in 2004 and renamed Spicejet and operated its first flight in May 2005.

It is the sixth largest airline in India by the number of domestic passengers carried; as of June 2024, it connects 73 destinations, including 60 domestic and 13 internationally, with a market share of 4%. 

Recently, Spicejet secured exclusive rights to operate over 100 special Haj flights from four key Indian cities- Kolkata, Guwahati, Srinagar, and Gaya. It is looking to generate an estimated ₹185 crore in revenue from this operation. Spicejet has been handling annual Haj operations since 2019, and it is one of the crucial parts of its Business strategy.

4. GVK Power & Infrastructure Ltd.

GVK Power & Infrastructure is a leading Indian conglomerate headquartered in Hyderabad with a diversified portfolio across various sectors, including energy, airports, transportation, hospitality, and life sciences. 

It operates in various infrastructure activities to contribute to the country’s growth. GVK collaborated with international infrastructure leaders to bring international expertise to India, which reflects its excellence and advancement in all its initiatives. 

GVK has introduced various infrastructure projects, including India’s first Independent power plant, the first six-lane road project, and the first Brownfield airport under the public-private partnership model. 

GVK manages and operates India’s first brownfield airport- The Chhatrapati Shivaji Maharaj International Airport, Mumbai. It has also won the mandate to build and operate India’s largest greenfield airport at Navi Mumbai.  

5. Global Vectra Helicorp Ltd.

Global Vectra Helicorp Ltd(GVHL),  incorporated in 1988, is the largest private helicopter company in India, providing professional, safe and accident-free helicopter services for over the past two decades. The company’s spectrum of operations encompasses support for India’s offshore oil and gas industry, onshore operations for state government(VIP flying), election flying, Heli pilgrimage, and other rotary services.

GVHL has a large young fleet of over 25, operated by highly experienced and well-trained aircrew, and they take care of their fleets through professional engineers, technicians and support staff. 

GVHL has a safety record of over 2.6 lakh hours of accident-free flying and safe carriage of over 4.6 million passengers. GVHL silently achieves consistent results, ensuring safe and reliable operations to support Indian Industry.   

Key Performance Indicators (KPIs)

While analyzing the best aviation stocks, it is always important to consider those key performance indicators (KPIs) that could give an idea about their potential to grow:

Factors to Consider Before Investing in Aviation Stocks in India 

Before Investing in Aviation stocks, there are some key factors that all investors should consider. 

• Financial Health: Firstly, investors should analyze the airline company’s financial performance, including its revenue, profit margins, debt ratios, and cash flow stability. They must also examine the company’s historical performance to ensure consistent profitability.
• Fuel Costs: Aviation stocks operating costs majorly depend on fuels; when fuel prices fluctuate, the profitability of aviation companies is directly affected.
• Economic Conditions: The airline company’s performance is combined with economic growth; a slowdown in the economy reduces air traffic demand and impacts the revenue of companies.
• Government Policies: Regulatory changes related to taxes, airport fees, or subsidies affect the profitability of airline companies and airport-related stocks.
• Competition: Competition in the aviation market in India is very high, with mergers and alliances with companies changing the landscape of the aviation market, and it affects the performance of aviation stocks. 

Advantages of Investing in Best Aviation Stocks in India

Investing in Aviation stocks in India can offer several advantages:

• High Growth Potential: The aviation sector in India is expanding rapidly due to an increase in domestic and international air travel demand. Airlines like Indigo and Spicejet are seeing high passenger traffic, which is boosting their revenues. 
• Government support: The Government is promoting regional connectivity through its outstanding initiative, UDAN, which benefits both airline companies and airport stocks. 
• Global Opportunities: Indian airlines are expanding their global presence, generating revenues from developing and maintaining airports there. It can enhance the profitability of aviation stocks. 

Disadvantages of Investing in Aviation Stocks in India

In the above paragraphs, you have read that aviation stocks are growing rapidly and increasing in revenue. Still, there are some risks involved in these stocks that you should always consider before investing in Aviation stocks.

• Aviation stocks rely a lot on government rules and regulations. Unexpected pandemics like Covid-19 that can disrupt their operations.
• Rising fuel prices can affect airline companies’ operating costs and increase their ticket fares, which can lead to low demand, which can hurt their profits and stock value.
• Many stocks are trying to recover their losses due to the Covid-19 pandemic.
• Airlines are affected by geopolitical situations, which can impact their demand and supply chain.
• Airlines are impacted directly by business travel, which is decreasing due to people using online meetings instead of traveling for work.

Conclusion

India’s aviation sector has seen remarkable growth with increased speed and capacity to carry passengers, and the Government supports it by investing in infrastructure and outstanding initiatives like UDAN. India’s domestic aviation market is the largest aviation market, following the US and China, and it serves 83 million domestic travelers annually. If you are considering buying or investing in aviation stocks, it is important to consider risks such as dependence on government regulations and geopolitical connections, fuel prices, and recovery from the pandemic crisis. Despite these risks, the aviation sector has significant potential for growth and contribution to the Indian economy.

Frequently Asked Questions (FAQs)