The aviation industry in India saw a significant boost in fuel consumption during December 2024, with the consumption of aviation turbine fuel (ATF) hitting an all-time high record of 778,000 tonnes. This surge in consumption was attributed to the year-end holiday season, which saw a rise in both international and domestic travel.
Historically, jet fuel consumption peaks during vacation periods, and December is no exception. The month sees a lot of foreign and domestic travel, with many people taking vacations and companies organizing year-end retreats. This trend was further supported by the increase in air travel in India, with more than 14.64 crore passengers flying domestically during the first eleven months of 2024, a 6% growth year-on-year.
The growth in air travel in India can be attributed to various factors such as improved airport infrastructure, stable cost structure of airline operators, and an overall increase in disposable income. This growth has propelled jet fuel demand to record highs in India’s fast-growing air passenger market. In FY24, domestic air traffic reached a record 154 million, leading to a consumption of 8.3 million tonnes of ATF, surpassing the previous high in FY19.
While jet fuel consumption soared, the consumption of auto fuels like petrol and diesel saw a marginal drop on a monthly basis in December 2024. However, their consumption was higher year-on-year, with diesel consumption rising by almost 6% to 8.05 million tonnes and petrol consumption growing by almost 11% to 3.31 million tonnes.
Overall, the aviation industry in India is experiencing a period of growth, driven by increasing air travel demand and improved infrastructure. With the trend likely to continue in the coming years, the aviation sector is poised for further expansion and development.
