According to the study by ICRA, the flight of the Indian airline sector is smooth in terms of growth in passenger traffic in this financial year. According to the credit rating agency, for May 2023, domestic air passenger traffic was estimated at about 131.8 lakh, up by about 2.3 per cent from about 128.9 lakh in April 2023. Moreover, it saw a year-on-year (YoY) growth of around 15 per cent as compared to May 2022. Domestic passenger traffic in May 2023 was projected to be about 8 per cent higher than pre-Covid levels (i.e. May 2019). Airlines’ capacity deployment in May 2023 was about 1.4 per cent higher than in May 2022, reaching pre-Covid levels (May 2019).
For FY2023, international passenger traffic for Indian carriers is estimated to be around 239.4 lakh, improving from pre-Covid (FY2020) levels of around 227.2 lakh, though down 8 per cent from FY2019 peak of around 259 lakh.
Further, for April 2023, international passenger traffic for Indian carriers is estimated to be around 21.8 lakh, about 18.3 lakh 20 per cent higher than the pre-Covid (April 2019) level.
ICRA’s outlook on the Indian aviation industry has been revised from negative to stable in recent times in view of the rapid recovery in domestic passenger traffic in FY2023 and expected continuation in FY2024.
In addition, the industry saw improvements in pricing power, as reflected in better yields and thus revenues per available seat kilometer-cost per available seat kilometer (RASK-CASK) for airlines.
Also Read – Maruti Suzuki Jimny is all set for offroading with chunky AT tires – view pics
ICRA said the gradual decline in Aviation Turbine Fuel (ATF) prices over the last five months and relatively stable foreign exchange rates as well as some pricing discipline in the industry are expected to continue.