Domestic air passenger traffic grew by a whopping 67 per cent year-on-year at around 87-88 lakh in October, on the again of festive season demand amid steady fall in the variety of COVID-19 an infection instances, says an ICRA report.
According to credit score rankings company ICRA, home passenger quantity in October 2020 was at 52.71 lakh.
The development in home passenger traffic, on a sequential foundation, was almost 24-25 per cent increased in contrast to 71 lakh, as per ICRA.
Moreover, home carriers operated 46 per cent extra flights at 72,000 throughout the month below assessment over 49,150 departures logged in October 2020, ICRA stated, including, on a sequential foundation, the variety of departures in October 2021 had been increased by around 18 per cent, as COVID-19 infections demonstrated a downward trajectory.
However, increased aviation turbine gas (ATF) costs proceed to pose a near-term problem with worth seeing a sequential enhance of 13.9 per cent in November 2021, it said.
For October 2021, the common day by day departures had been at around 2,400, considerably increased than the common day by day departures of 1,585 in October 2020, and better than around 2,100 in September 2021, stated Suprio Banerjee, Vice President and Sector Head at ICRA.
The common variety of passengers per flight throughout October this yr was 122, towards a median of 117 passengers per flight in the sooner month, he stated.
“Though the restoration continued in October, demand continues to be subdued from the company traveller section as mirrored by passenger traffic being decrease by around 28 per cent in October 2021, in contrast to pre-COVID ranges,” Banerjee stated.
The authorities allowed the airways to function at 100 per cent capability from October 18, which is a step in the precise course, given the onset of the festive season, ICRA stated.
The Civil Aviation Ministry had lowered the permissible capability deployment to 50 per cent of pre-COVID ranges, with impact from June 1, 2021 due to the resurgence of the second wave of the pandemic, which has now been restored again to 100 per cent in subsequent phases over the months.
According to ICRA, one main concern that continues to fear the aviation sector is the ATF costs, which have seen a pointy enhance of 94.4 per cent on a year-on-year (Y-o-Y) foundation until November 2021, primarily on account of enhance in crude oil costs.
This, coupled with comparatively low capability utilisation of plane fleet, will proceed to weigh on monetary efficiency of Indian carriers in FY2022, ICRA stated, noting that the credit score profile of most Indian carriers continues to be characterised by a weak liquidity place.
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