India’s domestic air passenger traffic was estimated at about 131.8 lakh in May 2023, which is about 2.3 per cent higher than about 128.9 lakh in April 2023, Investment Information and Credit Rating Agency (ICRA) revealed in its monthly report on the aviation industry in India, according to reports.
According to the credit rating agency’s study, the Indian airline sector is having a smooth flight in terms of increasing passenger traffic this fiscal.
ICRA informed that the Indian airline sector witnessed a year-on-year (YoY) growth of about 15 per cent, compared to May 2022. Earlier, last year the year-on-year (YoY) growth of domestic passenger traffic was about 8 per cent compared to the pre-Covid levels (that is, May 2019). The ICRA data also revealed that the airlines’ capacity deployment in May 2023 was higher by about 1.4 per cent than that of May 2022.
Additionally, the international passenger traffic for Indian carriers for FY2023 stood at approximately 239.4 lakh, which is an improvement from the pre-Covid (FY2020) levels of about 227.2 lakh.
Through its report, the credit rating agency concluded that the Indian aviation industry has been revised to Stable from Negative in the recent past. The report stated that the recovery in domestic passenger traffic in FY2023 was rapid and the same trend is expected to continue in FY2024.
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ICRA also noted that the aviation industry in India has witnessed improved pricing power this financial year and the same is expected to continue as the industry regains some pricing discipline, coupled with the sequential decline in aviation turbine fuel (ATF) prices.