Mumbai: Domestic air passenger traffic Credit rating agency Icra said on Monday that growth continued on trajectory in August, rising 31 per cent over the previous month to 6.6 million, driven by higher capacity deployment and a fall in the pandemic.
Domestic passenger traffic stood at 51 lakh in July 2021, ICRA said in a release.
However, on a year-on-year basis, the domestic passenger traffic grew by about 131 per cent from the 28.3 lakh traffic in August 2020.
The rating agency said that despite a steady improvement over the past month, there has been continued pressure on demand, driven mainly by the second wave of the pandemic, limiting travel to only essential travel.
“Demand for air travel continues to improve and grew by around 30-31 per cent to 65-66 lakh in August, as compared to around 50.1 lakh in July 2021, showing a year-on-year growth of around 131 per cent.” Kinjal Shah, Vice President and Co-Group Head of Corporate at ICRA said.
Airlines’ capacity deployment for August 2021 was almost 99 per cent higher at around 57,500 departures as against 28,834 departures in August 2020, Shah said, on a sequential basis, with the number of departures in August 2021 at around 22 per cent. St, as Covid-19 infections exhibited a downward trajectory.
“For August 2021, the average daily departures were approximately 1,900, significantly higher than the average daily departures of about 900 in August 2020, and over approximately 1,500 in July 2021, although this is lower than the approximately 2,000 in April 2021,” Shah said.
He said that the average number of passengers per flight during August 2021 was 114, while in July 2021 the average number of passengers per flight was 106.
While the recovery continued in August 2021, demand remains under pressure, driven primarily by a second wave of the pandemic, with demand restricted to essential travel only, while various state-wide restrictions have led to leisure and Business travel has been reduced to both. Despite the decline in infections, she said.
NS ministry of civil aviation Allowed to gradually increase capacity deployment on domestic routes, from 33 per cent, to 80 per cent with effect from December 3, 2020, from May 25, when domestic travel resumed after the first wave last year.
However, it reduced the capacity deployment to 50 per cent of pre-Covid levels with effect from June 1, 2021, due to the resurgence of the second wave of the pandemic.
Icra said it has again increased the permitted capacity to 65 per cent with effect from July 5, which has been later increased to 75.2 per cent with effect from August 12 this year.
In addition, the ministry has increased the minimum and maximum fare bands by 10-13 per cent for domestic flights from August 12, 2021 to August 31, 2021.
“In the view of ICRA, the price hike may not materially impact the demand for passenger traffic as in the present scenario, travel is restricted to essential travel only, while both leisure and business travel due to various state-wide restrictions and spread The transition has been reduced. However, it will allow airlines to offset some part of the increase in jet fuel prices, which will have some impact on airlines’ losses,” it said.
Domestic passenger traffic stood at 51 lakh in July 2021, ICRA said in a release.
However, on a year-on-year basis, the domestic passenger traffic grew by about 131 per cent from the 28.3 lakh traffic in August 2020.
The rating agency said that despite a steady improvement over the past month, there has been continued pressure on demand, driven mainly by the second wave of the pandemic, limiting travel to only essential travel.
“Demand for air travel continues to improve and grew by around 30-31 per cent to 65-66 lakh in August, as compared to around 50.1 lakh in July 2021, showing a year-on-year growth of around 131 per cent.” Kinjal Shah, Vice President and Co-Group Head of Corporate at ICRA said.
Airlines’ capacity deployment for August 2021 was almost 99 per cent higher at around 57,500 departures as against 28,834 departures in August 2020, Shah said, on a sequential basis, with the number of departures in August 2021 at around 22 per cent. St, as Covid-19 infections exhibited a downward trajectory.
“For August 2021, the average daily departures were approximately 1,900, significantly higher than the average daily departures of about 900 in August 2020, and over approximately 1,500 in July 2021, although this is lower than the approximately 2,000 in April 2021,” Shah said.
He said that the average number of passengers per flight during August 2021 was 114, while in July 2021 the average number of passengers per flight was 106.
While the recovery continued in August 2021, demand remains under pressure, driven primarily by a second wave of the pandemic, with demand restricted to essential travel only, while various state-wide restrictions have led to leisure and Business travel has been reduced to both. Despite the decline in infections, she said.
NS ministry of civil aviation Allowed to gradually increase capacity deployment on domestic routes, from 33 per cent, to 80 per cent with effect from December 3, 2020, from May 25, when domestic travel resumed after the first wave last year.
However, it reduced the capacity deployment to 50 per cent of pre-Covid levels with effect from June 1, 2021, due to the resurgence of the second wave of the pandemic.
Icra said it has again increased the permitted capacity to 65 per cent with effect from July 5, which has been later increased to 75.2 per cent with effect from August 12 this year.
In addition, the ministry has increased the minimum and maximum fare bands by 10-13 per cent for domestic flights from August 12, 2021 to August 31, 2021.
“In the view of ICRA, the price hike may not materially impact the demand for passenger traffic as in the present scenario, travel is restricted to essential travel only, while both leisure and business travel due to various state-wide restrictions and spread The transition has been reduced. However, it will allow airlines to offset some part of the increase in jet fuel prices, which will have some impact on airlines’ losses,” it said.
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